Security Interest
/ˈsɪˌkjʊrɪti ˈɪntrəst/
Definitions
- (n.) A legal claim or lien granted on personal property or fixtures to secure payment or performance of an obligation.
The creditor holds a security interest in the debtor's inventory as collateral for the loan.
- (n.) An interest in property recognized by law that allows a creditor to seize or sell the property if the debtor defaults.
The lender perfected its security interest by filing a public notice.
Forms
- security interests
Related terms
See also
Commentary
Security interests must generally be perfected through filing or possession to have priority over other creditors.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.