security interest

security interest definition - legal

n

An interest in property created by the operation of law or by agreement to repay a loan; a lien on personal property created by an agreement.
purchase-money security interest
Interest taken by the collateralÂ’s seller, such as an automobile. It is a purchase-money security interest, created by a bank, allowing one to pay off the cost of a car on an installment basis while enjoying its use. The bank retains the title until the full amount (along with interest) has been paid.

Webster's New World Law Dictionary Copyright © 2006 by Wiley Publishing, Inc., Hoboken, New Jersey.
Used by arrangement with John Wiley & Sons, Inc.

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