Secured debt

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Secured debt

Debt that has first claim on specified assets in the event of default.

Secured Debt

A debt on which payment is guaranteed by an asset or lien. This means that a secured debt has collateral; if the debtor does not repay the debt in due course, the creditor has the legal right to take possession of the collateral and resell it to recover losses. In case of bankruptcy, the creditor is considered a secured creditor, which means the creditor receives proceeds from the sale of the collateral to satisfy the debt. If the collateral is insufficient, all secured creditors must have their debts satisfied before any unsecured creditors receive any funds.
References in periodicals archive ?
The guarantee will be indefinite, remaining in effect until the City Council resolved Zizur Mayor expressly declare the extinction of the secured obligation and cancellation of the guarantee.
In denying the taxpayer's claims, the court in Continental Vending first noted that Fahs was distinguishable because the debt was a secured obligation.
Thus, a transfer of a secured obligation by the seller of the property to a controlled corporation and a subsequent repossession of real property by the corporation would avoid Sec.
The Notes are first lien senior secured obligations and will rank pari passu in right of payment with all of the Issuers' existing and future senior indebtedness, including the Issuers' first lien term loan facility (the "First Lien Term Loan Facility").
Fitch understands that JAFZ has confirmed that its obligations under its undertaking to purchase will be its direct, unconditional and secured obligations and will at all times rank pari passu with its other unsubordinated and secured obligations from time to time outstanding.
The notes will be the senior secured obligations of ILFC and will be guaranteed on a senior secured basis by certain of ILFCas wholly owned subsidiaries.
The senior secured notes will be senior secured obligations of the airline.
The first lien notes will be senior secured obligations of United, with the company's obligations under these notes guaranteed on a senior unsecured basis by UAL and certain of UAL's subsidiaries.
1996) (attorneys' fees paid out under a structured settlement were not funded or secured obligations, but mere promises to pay and, thus, only taxable in the year of actual receipt).
The plan further suggests selling Asahi's collateral properties to help pay for its secured obligations, worth 10.
The New Notes will be the second lien senior secured obligations of UHS and will be guaranteed, jointly and severally, on a second lien senior secured basis, by our existing current and certain of our future wholly-owned domestic subsidiaries.
The Notes will be first lien senior secured obligations and will rank pari passu in right of payment with all of the Issuers' existing and future senior indebtedness, including the First Lien Term Loan Facility.