Secured debt

(redirected from Secured Obligation)

Secured debt

Debt that has first claim on specified assets in the event of default.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved
References in periodicals archive ?
A fine may be established in the form of a concrete sum of money, or expressed in percentage terms on the amount of the secured obligation, and the forfeit stipulated for a delay in performance of an obligation may be established for every day, week, month, etc., that exceeds the time-limit of the performance.
In denying the taxpayer's claims, the court in Continental Vending first noted that Fahs was distinguishable because the debt was a secured obligation. Further, the court noted that "[t]he Fahs case is out-of-step" with cases such as Schlude, 372 US 128 (1963),and American Auto.
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.
European CLO assets must meet a definition set out in transaction documentation to qualify as senior secured obligations. This usually states that a revolving loan can have a higher priority security interest in the assets (or stock) securing a senior secured obligation in the event of enforcement, but only if it does not represent more than a specified proportion of the obligor's senior debt.
It also envisages a Fitch senior secured obligation concept, which is defined with a RCF limit at 15%.
In addition, the first priority and second priority notes and the subsidiary guarantees will be senior secured obligations and will rank senior in right of payment to all of BGI's and in the case of the guarantees, to all of the guarantors', existing and future subordinated debt or future debt that is subordinated in right of payment to the second priority notes.
These notes will be senior secured obligations of the Issuer and will be guaranteed by Endo and certain of the latter's subsidiaries and will be secured by first priority liens on the same collateral that secures its obligations under its existing senior secured credit facilities and existing senior secured notes.
is a securitisation of mainly senior secured obligations (at least 90%) with a component of senior unsecured, mezzanine, and second-lien loans.
The Notes are senior secured obligations of ReadyCap.
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.