Security Interest
noun
The legal rights that a lender or creditor has in the property of a debtor as collateral to secure the underlying debt or obligation. In regards to real property, security interests typically arise through a mortgage or the placement of a lien against the property.
If the party who granted the security interest fails to fulfill their obligations, then the holder of the interest can take possession of the property securing the debt and force the sale to recoup the losses. Additionally, secured debts will take priority over unsecured debts if the debtor files for bankruptcy.
Words related to “Security Interest”
