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:
“To have in general but little feeling, seems to be the only security against feeling too much on any particular occasion.”
—George Eliot [Mary Ann (or Marian)
“I cannot assent to a measure which stains our credit. We must keep that untainted. We are a debtor nation. Low rates of interest on the vast indebtedness we must carry for many years, is the important end to be kept in view. Expediency and justice both demand honest coinage.”
—Rutherford Birchard Hayes (1822–1893)