Security Interest Definition

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Definition Of Security Interest:

A claim on assets or funds taken by a creditor to insure that a loan or debt will be repaid.
The security interest may be a portion of a property or asset for which a loan was issued. If the borrower defaults, the pledged security interest is the property of the buyer.Other definition of security interest- Enforceable claim or lien created by a security agreement, or by the operation of law, that secures the fulfillment of a pledge. A lender or obligee has a security interest in the collateral provided by a borrower or obligor to guaranty timely payment of a debt or performance of an obligation. See also perfected security interest.

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