A loan that requires a piece of property (such as a house or car) to be used as collateral. This collateral provides security for the lender, since the property can be seized and sold if you don't repay the debt.
A secured debt is one where the creditor secures a lien on personal or real property. A secured creditor has established, in perfecting a lien, the right to repossess the property to satisfy a debt in default.
Debt backed by specified assets or revenues of the borrower. In the event of default, the lenders can force the sale of such assets to meet their claims. In the UK, secured debt is known as debenture( c.f. unsecured debt).
This type of debt is the result of money loaned on collateral, which might come inthe form of your home or other valuable possessions. If you neglect to pay off according to the terms agreed, the lender can acquire that collateral from you.
Debt the repayment of which is secured because the borrower has provided collateral to the lender. Most loans from banks are secured loans in which the company has given as a security interest in its assets, including inventory, accounts receivable and machinery and equipment.
When there is a lien such as a mortgage, car loan, or for such things as car repairs, that is considered a secured debt. The lien holder is entitled to the value of the property less any higher priority liens before payment to unsecured creditors. A first mortgage where the property is worth more than the balance due is a secured claim.
Debt that is secured by collateral, which might come in the form of the home or other valuable possessions. If the borrower neglects to pay off according to the terms agreed, the lender can acquire that collateral from the borrower.
A secured debt is one where the creditor takes personal or real property as collateral. A creditor whose debt is secured has a right to take property to satisfy a debt in default. For example, most homes are burdened by a secured debt in the form of a mortgage. This means that the lender has the right to take the home if the borrower fails to make payments on the loan.
Debt backed by a mortgage, pledge of collateral, or other lien; debt for which the creditor has the right to pursue specific pledged property upon default. Examples include home mortgages, auto loans and tax liens.
A debt on which a creditor has a lien. The creditor can institute a foreclosure or repossession to take the property identified by the lien to satisfy the debt in the event of default. Compare this to an unsecured debt.
A claim secured by a lien in the debtor's property by reason of the debtor's agreement or an involuntary lien such as a judgment or tax lien. The creditor's claim may be divided into a secured claim, to the extent of the value of the collateral, and an unsecured claim equal to the remainder of the total debt. Generally a secured claim must be perfected under applicable state law to be treated as a secured claim in the bankruptcy.
A debt on which a creditor has a lien. The creditor can institute a foreclosure or repossession to take the property identified by the lien, called the collateral, to satisfy the debt if you default. Compare unsecured debt.
Debt secured by a claim on the borrower's property. Car loans and mortgages are common types of secured debt. Lenders are willing to offer money at lesser rates with secured debt, because they have an asset they can seize if the borrower doesn't pay as agreed.
Money borrowed that is guaranteed (or secured) by the borrower's funds and held by the lender in an interest-bearing account. Typically required when a borrower is without credit or has poor credit. The lender usually returns the secured money plus a nominal rate of earned interest to the borrower with a certain period of time if a good credit history is established. Distinguished from unsecured debt.
A debt on which collateral has been pledged by the borrower. The creditor can institute a foreclosure or repossession, or take the property identified by the lien, called the collateral, to satisfy the debt if you default.
Secured debt is that category of debt in which a creditor has been granted a portion of the bundle of rights to specified property. The opposite of secured debt is unsecured debt, which is not connected to any specific piece of property. The purpose of securing debt is to allow the creditor to take the property in the event that the debt is not properly repaid, with the underlying belief that permitting this course of action allows debtors to get loans on more favorable terms than that available for unsecured debt, or to be extended credit under circumstances when credit under terms of unsecured debt would not be extended at all.
Money borrowed that is secured on an asset, i.e. house, car or furniture, if terms of payment are not kept to, the lender may demand the monies back by the sale or return of the asset that money was secured on.