Security-interest meaning

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.
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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.
noun
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Interest taken by the collateral’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.
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(law) The right of a lender to take possession of collateral offered to secure the loan.
noun
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