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A secured loan is a loan in which the borrower pledges some asset (e.g. a car or property) as collateral for the loan, which then becomes a secured debt owed to the creditor who gives the loan. The debt is thus secured against the collateral, and if the borrower defaults , the creditor takes possession of the asset used as collateral and may ...
Secured debt is backed by collateral, whereas unsecured debt doesn't require you to put any assets on the line to get approved. Because lenders take on more risk, unsecured debts tend to have ...
A secured loan requires you to pledge collateral — something of value like a savings account or car. If you default, a lender can seize the collateral to satisfy the debt.
A secured transaction includes several forms of collateral. The definition of collateral in the U.C.C. is: the property subject to a security interest or agricultural lien. The term includes: (A) proceeds to which a security interest attaches; (B) accounts, chattel paper, payment intangibles, and promissory notes that have been sold; and
Secured transactions in the United States are an important part of the law and economy of the country. By enabling lenders to take a security interest in collateral (that is, the assets of debtors ), the law of secured transactions provides lenders with assurance of legal relief in case of default by the borrower.
Like a share-secured loan, a secured credit card is attached to a deposit account. The credit limit is the same amount deposited into the account. The money is removed from the account if you don ...
Recourse debt or recourse loan is a debt that is backed by both collateral from the debtor, and by personal liability of the debtor. [2] This type of debt allows the lender to collect from the debtor and the debtor's assets in the case of default, in addition to foreclosing on a particular property or asset as with a home loan or auto loan.
Secured business loans require collateral to back the loan. Unsecured business loans typically require a personal guarantee, while secured loans may have lower interest rates and higher borrowing ...