- Security Interest
- A legal claim on collateral that has been pledged, usually to obtain a loan. The borrower provides the lender with a security interest on certain securities/assets which can be repossessed in the event that timely obligation payments are not met.
In the event that the lender fails to uphold a proper debt repayment schedule, the holder of the security interest takes possession and is able to sell the underlying collateral. In the event of bankruptcy secured lenders have precedence over unsecured lenders.
Investment dictionary. Academic. 2012.
Look at other dictionaries:
security interest — see interest 1 Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. security interest … Law dictionary
security interest — Interest in property obtained pursuant to security agreement. In re Wilson, Bkrtcy.Pa., 25 B.R. 61, 63. A form of interest in property which provides that the property may be sold on default in order to satisfy the obligation for which the… … Black's law dictionary
security interest — A lien created by an agreement (SA Bankruptcy.com) A lien on personal property obtained by consent. Security interest is often used to describe any lien on property. (Bernstein s Dictionary of Bankruptcy Terminology) Under Title 11 U.S.C. Section … Glossary of Bankruptcy
Security interest — A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt. It gives the beneficiary of the security interest certain… … Wikipedia
Security interest — Sûreté réelle En droit, une sûreté réelle (security interest ou collateral en anglais) est une garantie offrant à un créancier un droit sur un bien immobilier qui lui permet d obtenir paiement de sa créance en cas de défaillance du débiteur.… … Wikipédia en Français
security interest — An interest in personal property or fixtures which secures payment or performance of an obligation. 15 Am J2d Com C § 7. In the broad sense, an interest in security of any form … Ballentine's law dictionary
security interest — Term used to describe an interest in personal property ( collateral) owned by a debtor. American Banker Glossary The creditor s right to take property or a portion of property offered as security. Bloomberg Financial Dictionary … Financial and business terms
security interest — noun any interest in a property that secures the payment of an obligation • Hypernyms: ↑interest, ↑stake • Hyponyms: ↑pledge, ↑mortgage, ↑conditional sale, ↑collateral, ↑lien … Useful english dictionary
security interest — noun Date: 1951 the rights that a creditor has in the personal property of a debtor that secures an obligation ; lien … New Collegiate Dictionary
security interest — noun The right of a lender to take possession of collateral offered to secure the loan … Wiktionary