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 ?
Usually, proposals are made only to unsecured creditors as the secured creditors generally have the right to operate outside this process.
If a secured creditor waives his security interest, he shall be entitled to participate in the liquidation proceedings as an unsecured creditor.
The whole Code is set up to protect secured creditors from the undervaluation of their claim," Maynard said.
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.
Those cases held secured creditors in certain situations strictly liable for the costs of cleanup of contaminated property of their borrowers.
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 has indicated his plan will require additional capital from the secured creditors or other third parties.
TO), one of Truland Group, Inc's largest secured creditors, is looking to recoup as much of the losses as possible from its deal with Truland, a failed contractor.
The closing is subject to customary terms, including environmental and structural inspections, completion of closing documentation, delivery of vacant possession after removal of the assets being sold to the first purchaser, and approval of secured creditors.
At stake is whether secured creditors have an absolute right to bid the value of debt owed to them by a debtor selling assets at auction, when the sale is part of a plan of reorganization, a process called credit bidding, as the U.
Finally, the other change of interest to lenders and secured creditors is the new priority that back wages have over all secured creditors.