Secured transaction
A deal in which a buyer or borrower (called a debtor) guarantees payment of an obligation by giving a security interest in property to the seller or lender (called a secured party). The property in which a security interest exists is called collateral. If the buyer or borrower breaches the agreement to pay, the seller or lender may take possession of the collateral or anything else specified by the security agreement.
Definition from Nolo’s Plain-English Law Dictionary
An arrangement in which a lender or buyer pledges property as collateral for a loan or sale. (See also: secured debt)
Definition provided by Nolo’s Plain-English Law Dictionary.
August 19, 2010, 5:24 pm
