COLLATERAL (Fr. collateral, It. collate rale, front ML. collateralis, collateral, from con-, together + laterulis, relating to a side, from /Oils, side). In law, supplemental or re lated to the principal thing in consideration, especially: (a) Given by way of security in addition to a principal obligation. (h) Descend ed from a common ancestor but not from one another—a sense used to describe the character of relationship of individuals for legal purposes.
Collateral Security is either: (a) Something of intrinsic value actually delivered over and pledged to the creditor, the value of which is to be applied on the debt in case of default; or (h) an additional obligation. given to guarantee performance of a debt or duty. The term is more frequently used to designate a pledge of stocks, bonds, negotiable paper, or other evi dences of obligation, as distinguished from a pledge of chattels. The practice in case of a default is for the creditor, upon notice to the debtor. to sell the securities and apply the amount received therefrom toward the satisfac tion of his claim and charge the debtor with the deficiency, or credit him with the surplus, if any. See MORTGAGE; PLEDGE; FORECLOSURE;
_Dna consult the authorities cited under PLEDGE.
Collateral Relatives, more frequently spoken as 'collaterals,' are those who are descended from the same common ancestor, but not from one another. as lineal descendants are. Thus, an uncle is a collateral relative of a nephew, both being descended from a common ancestor, but the nephew not being a lineal descendant of the uncle. The term includes those in the relation ship of brothers and sisters, aunts and uncles, nephews and nieces, and cousins. Collateral rel atives are included in the term heir, real prop erty descending in the first instance to lineal descendants, if any, and then to eollaterals in the order of their relationship or as prescribed by statutes. See CoxsANnumTv; DESCENDANT; HEIR; LINEAL; DECEDENT; and consult the au thorities referred to under DESCENT, etc.