Written obligation of a borrower that is backed by collateral in the event of default.
Secured party
Lender who possesses the collateral of the borrower if the loan is defaulted upon.
Securities and exchange commission (sec)
Federal agency created in 1934 to carry out the provisions of the Securities Exchange Act. Generally, the agency seeks to protect the investing public by preventing misrepresentation, fraud, manipulation and other abuses in the securities market.
Securitization
Process of the borrower giving the lender security to obtain the loan.
Security
(1) The property designated as collateral in a secured loan. (2) A document that serves as evidence of ownership. (3) Freedom from danger and the acts taken to prevent loss or physical danger.
Security agreement
Legal contract in which the lender controls the pledged property being financed. This agreement describes the property and its location. In the event of default, the lender may sell the collateral.
Security chest
Security chests offer the consumer who has a limited number of documents and valuables, organization and protection against fire and theft.
Security deposit
Prepayment to a landlord to offset any damage that might occur beyond normal wear and tear. It is considered a damage deposit. Laws in most states require landlords to hold the deposit in a separate account and refund the amount, if no damage is done, within a specified time after termination of the lease.
Security instrument
An interest in real estate that allows the property to be sold upon a default on the obligation for which the security interest was created. The security instrument is more specifically described as a security deed, a mortgage or trust deed.
Security interest
Interest in real estate in which the real estate serves as collateral.
