secured creditor


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Related to secured creditor: Unsecured creditor

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 ?
The reality of the current climate is that for the majority of the businesses that are facing financial hardship, control vests with the secured creditors.
Shelly's commercial litigation representations include prosecuting breach of fiduciary duty and fraudulent transfer claims on behalf of corporations; defending and prosecuting foreclosure actions for secured creditors and debtors; and enforcing contracts and breach of contract claims.
The creditor will lose its secured creditor exemption if, within 90 days of receipt, it outbids, rejects, or fails to act upon a written, bona fide firm offer of fair consideration for the property at any time six months after foreclosure.
Of course, the main reason you file for Chapter 11 is to get the bankruptcy court to approve a reorganization plan that you have negotiated with your unsecured and secured creditors.
In the case, the court found that the participation of a lender in the financial management of a facility "to the degree indicating a capacity to influence the corporations treatment of hazardous material" could cause the lender to lose its secured creditor exemption.
JED closed the acquisition of the debt and security position held by Caribou's major secured creditor for approximately $26.
BioExx intends to use the proceeds of that sale to fully repay its first secured creditor, with the balance allocated to working capital and general corporate purposes.
We've been a customer of Beverly Hills Fan since 1993 and the secured creditor contacted us about the sale because they knew we were interested," Keenan said.
On March 5th the Bankruptcy Court authorized the Company to begin store closing sales for the benefit of its secured creditor.
4 /PRNewswire/ -- Foreland Corporation (OTC Bulletin Board: FORL) announces that its principal secured creditor has notified Foreland that negotiations concerning the restructuring of its indebtedness with its principal secured creditor have terminated.
EXCO, as the secured creditor of the Company in respect of a note acquired by EXCO from a Texas bank, will be issued shares of common stock of the Company upon consummation of the merger in settlement of the Company's $13 million secured indebtedness owed to EXCO.