undersecured claim

undersecured claim definition - business

undersecured claim

Debt secured with collateral that has a value of less than the amount of the debt. For example, a lender offers 100% financing for the purchase of a new vehicle, which immediately becomes a used vehicle that loses thousands of dollars in value. The lender has an undersecured claim.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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