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.

See Secured transactions law.