A security interest is a property interest created by agreement or by operation of law over assets to secure the performance of an obligation, usually the payment of a debt. It gives the beneficiary of the security interest certain preferential rights in the disposition of secured assets. Such rights vary according to the type of security interest, but in most cases, a holder of the security interest is entitled to seize, and usually sell, the property to discharge the debt that the security interest secures.
Read more about Security Interest: Rationale, Security, Types, Security Interest Vs. General Obligation, Perfection, "Quasi-security", United States (the Uniform Commercial Code), Civil Law Countries, See Also
Famous quotes containing the words security and/or interest:
“There is one safeguard known generally to the wise, which is an advantage and security to all, but especially to democracies as against despots. What is it? Distrust.”
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