COLLATERAL
collateral (k<<schwa>>-lat-<<schwa>>r-<<schwa>>l), adj.1. Supplementary; accompanying, but secondary and subordinate to <whether the accident victim was wearing a seat belt is a collateral issue>.2. Not direct in line, but on a parallel or diverging line of descent; of or relating to persons who are related by blood but are neither ancestors nor descendants <an uncle is in a collateral, not a direct, line>. Cf. LINEAL. — collaterality (k<<schwa>>-lat-<<schwa>>r-al-<<schwa>>-tee), n. collateral (k<<schwa>>-lat-<<schwa>>r-<<schwa>>l), n.1. A person collaterally related to a decedent. [Cases: Descent and Distribution 37; Wills 499. C.J.S. Descent and Distribution §§ 44–49; Wills§§ 909, 915–916.] 2. Property that is pledged as security against a debt; the property subject to a security interest or agricultural lien. See UCC § 9-102(a)(12). — Also termed (in sense 2) collateral security. [Cases: Secured Transactions 11, 115. C.J.S. Secured Transactions §§ 3, 11, 84.]as-extracted collateral. 1. Oil, gas, or other minerals that are subject to a security interest that is created by a debtor having an interest in the minerals before extraction and that attaches to the minerals as they are extracted. UCC § 9-102(a)(6)(A). 2. An account arising out of the sale at the wellhead or minehead of oil, gas, or other minerals in which the debtor had an interest before extraction. UCC § 9-102(a)(6)(B).cash collateral.Collateral consisting of cash, negotiable instruments, documents of title,securities, deposit ac-counts, or other cash equivalents. 11 USCA § 363(a).cross-collateral. 1. Security given by all parties to a contract. 2.Bankruptcy. Bargained-for security that in addi-tion to protecting a creditor’s postpetition extension of credit protects the creditor’s prepetition unsecured claims, which, as a result of that security, obtain priority over other creditors’ prepetition unsecured claims. • Some courts allow this procedure, which is known as cross-collateralization. [Cases: Bankruptcy 3037.] [Blacks Law 8th]