Difference between revisions of "Security"
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| − | '''Security''' in law or business meaning rights in property that protect a lender against loss if the borrower defaults, or fails to repay, a [[loan]]. | + | '''Security''' in law or business meaning rights in property that protect a lender against loss if the borrower defaults, or fails to repay, a [[loan]]. When a piece of property is used as security for a loan, the lendor has a security interest in such property. It is important to distinguish between security interests and securities, which are stocks and bonds that represent equity or debt interests, respectively, in a corporation or other entity. |
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| + | The laws concerning security interests are separated into laws concerning personal property and laws concerning real property. Security interests in personal property are governed by Article 9 of the Uniform Commercial Code, a form of which is in force in each state. Security interests in real property are governed by the [[mortgage]] laws of each state, which vary considerably among the states. | ||
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[[Category:Legal Terms]] | [[Category:Legal Terms]] | ||
[[category:bankruptcy]] | [[category:bankruptcy]] | ||
Revision as of 17:56, December 19, 2008
Security in law or business meaning rights in property that protect a lender against loss if the borrower defaults, or fails to repay, a loan. When a piece of property is used as security for a loan, the lendor has a security interest in such property. It is important to distinguish between security interests and securities, which are stocks and bonds that represent equity or debt interests, respectively, in a corporation or other entity.
The laws concerning security interests are separated into laws concerning personal property and laws concerning real property. Security interests in personal property are governed by Article 9 of the Uniform Commercial Code, a form of which is in force in each state. Security interests in real property are governed by the mortgage laws of each state, which vary considerably among the states.