security interest

security interest definition - finance
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.

Webster's New World Finance and Investment Dictionary Copyright © 2003 by Wiley Publishing, Inc., Indianapolis, Indiana.
Used by arrangement with John Wiley & Sons, Inc.

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