secured creditor

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Secured Creditor

One who is owed a collateralized debt. A secured creditor has a lien or collateral on the debt, depending on the nature of the goods. In the event of bankruptcy in the United States, a general creditor has a right to repossess the property if the debt is not paid, especially in case of bankruptcy. In Chapter 7 bankruptcy, secured creditors are usually allowed to repossess the property even if the debt is discharged. The creditor may waive this right if the debtor reaffirms the debt, that is, signs a statement indicating that the debt still exists. See also: General creditor.

secured creditor

A creditor having a claim that is protected by specific assets. For example, the owner of a mortgage bond can force the sale of or can take possession of a particular asset if the borrower fails to meet the terms of the lending agreement. Compare unsecured creditor.

secured creditor

see CREDITORS.
References in periodicals archive ?
Where there are no secured creditors, CVAs remain a flexible and quick procedure where businesses are able to agree with their creditors an arrangement for a period of time.
In the Edgewater Medical Center bankruptcy case in the Northern District of Illinois, she represented the secured creditor bank for its $50+ million claim, and the debtor, as special counsel, in litigation against the debtor's insiders.
However, a secured creditor will be liable if it exercises control of the borrower's environmental compliance or engages in day-to-day decision-making activities.
If you and your creditors cannot agree, however, a provision of the Bankruptcy Code does allow you to "cram down" a reorganization plan over the objections of these creditors, even a secured creditor.
Clements remarked: "Over the last two months, the Company has reduced its overhead, changed its sales and marketing direction and received the support of our secured creditors.
BMO Harris Bank NA was the largest secured creditor to Truland Group, Inc.
Proceeds of the sale are being applied to a partial payment of a loan due to the Company s first secured creditor, with the balance allocated to working capital and general corporate purposes.
In papers filed with the Bankruptcy Court, Refco said that the agreement with the secured creditors was in the best interest of the Refco estates and their creditors because, among other things, it limits "potentially substantial secured claims for additional interest, fees and indemnities.
Those same secured creditors as well as the Official Committee of Unsecured Creditors are co-proponents of the Amended Plan.
Brian Swett represents senior secured lenders and other secured creditors, as well as public and private companies, including debtors in possession, sellers, purchasers, shareholders and investors, in all aspects of in-court and out-of-court workout, restructuring and reorganization matters.
Shelly's Woodroast restaurant, with the net sale proceeds being paid to secured creditors.
The Plan was developed following negotiations with the pre-petition secured creditors, the Debtor-in-Possession Lenders, and the Unsecured Creditors' Committee.