Top definition
To remove an object from risk of repossession in the event of a loan default, by assigning another object as collateral to the loan amount in its place.
Sissy, I own my car free and clear, now that you have decollateralized it by making Dad's car collateral for your loan instead.
by FoxxDogg June 17, 2005
Get the mug
Get a Decollateralize mug for your boyfriend Manley.