Collateral

What collateral means

In short, collateral is a term you will meet in court papers, rules and legal research. The definition above gives its usual meaning in American civil practice. However, the exact meaning can depend on the rule, statute or court decision that uses it. So it helps to read the term in context.

Where collateral comes up

For example, the term appears in these procedures:

• Writ of Garnishment (Fed. R. Civ. P. 64, 69(a); 15 U.S.C. § 1673; 42 U.S.C. § 407(a); state law): a court order directing a third party who owes money to, or holds property of, a debtor — such as an employer or bank — to pay or hold it for the creditor.

Read the source: Collateral estoppel.

How to research the term

First, read the term where it actually appears. A rule, statute or court decision may define it for its own purposes. Next, check whether your court has a local rule that uses collateral in a special way. Then look at recent decisions from courts in your jurisdiction. They show how judges apply the term today. Also, remember that state law can differ from federal law. For that reason, use our state procedures guide to find your state’s rules. Finally, confirm every source is current before you rely on it.

You can read the official rule text online for free.

Related legal terms

• Clerk: usually short for the clerk of court, the officer who keeps the court's records and docket, accepts filings, issues summonses and subpoenas and performs duties the rules assign, assisted by deputy clerks.
• Clerk of court: the court officer who maintains records, accepts filings and performs duties assigned by the rules, such as entering defaults.
• Client: a person or organization that engages a lawyer for legal services.
• Coercion: using force, threats or other pressure to make someone act against their will. A contract or other agreement obtained by improper threats can be voidable for duress (Restatement (Second) of Contracts § 175). Many coercive acts are also crimes, such as extortion and coercing a person by threats of violence.

Why precise terms matter

Courts read legal terms closely. As a result, knowing the exact meaning of a word helps you follow orders, rules and filings. Each glossary entry on Lawtopolis is short on purpose and links to the pages where the term is used.