Secured loan


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Secured Loan

A loan with collateral. That is, the borrower pledges a property or other asset to the creditor and states that the creditor may take ownership if the borrower defaults on the loan. Sometimes the creditor even takes possession of the collateral, though this is not always the case. A common example of a secured loan is a mortgage, in which the lender has the right to take ownership of the real estate purchased with the mortgage if the property owner does not make payments in a timely manner. In corporate finance, all secured loans must be repaid before any unsecured loans are repaid.

Secured loan.

A secured loan is a loan that's guaranteed with collateral, such as a home or car. If you default and fail to make payments on time, the lender can take possession of your collateral and sell it to recover the loan amount.

In most cases, lenders charge a lower interest rate on a secured loan than on an unsecured loan of comparable size. An unsecured loan is guaranteed only by your promise to pay, not by collateral.

References in periodicals archive ?
Aviation Capital Group LLC (ACG), a California-based aircraft operating lessor, has announced it has structured, arranged and provided a guarantee of a senior secured loan by Apple Bank for Savings (Apple Bank) to finance a portion of the purchase price of one Airbus A350-1000 aircraft delivered to Virgin Atlantic Airways (Virgin Atlantic), the company said.
California-based aircraft operating lessor Aviation Capital Group LLC (ACG) has announced it has structured, arranged and provided a guarantee of a senior secured loan by Apple Bank for Savings (Apple Bank) to finance a portion of the purchase price of one Airbus A350-1000 aircraft delivered to Virgin Atlantic Airways (Virgin Atlantic), the company said.
For those with low credit scores, one of the best options available to you for obtaining a loan might be a secured loan. This type of loan allows you to borrow against an asset like a car with a car equity loan, savings or CDs, a retirement account, or home equity with a HELOC.
Ventas's tranche of the New Secured Loan, which totals $490M, bears interest at LIBOR plus 6.42%, representing a current all-in GAAP rate of 9%.
In addition to refinancing the HK$3.7 billion secured loan due this year, the new term loan facility will be used to early refinance HK$1.3 billion secured loan due in 2021.
On October 26, 2018, the company entered into a restructuring support agreement with the ad hoc group and certain other parties pursuant to which the company has agreed to pursue a chapter 11 plan that contemplates (i) each holder of secured loan claims will receive its pro rata share of 98.25% of the equity of the reorganized company and (ii) each holder of unsecured loan claims will receive its pro rata share of 1.75% of the equity of the reorganized company.
The courts regarded the debtors' pre-petition and Chapter 11 secured loans as one transaction that related back to the inception of the pre-petition secured loan when there were no reclamation claims.
The company aims to use the net proceeds from this offering, together with cash on hand, to redeem its outstanding 7.75 percent Senior Notes due 2019 to prepay its secured loan facility and to cancel a copper call option held by the secured loan facility lender.
As part of the investment, it will also co-invest in a secured loan portfolio with a face value of circa EUR 1.7bn (circa 9,300 loans), with the group taking responsibility for servicing of the entire loan book.
11 November 2013 - US molecular diagnostics laboratory Exagen Diagnostics Inc said last week it had closed an up to USD-25-million (EUR 18.7m) senior secured loan from Capital Royalty Partners II LP.
ILFC added that it used the proceeds to prepay in full and at par its USD550m senior secured loan originally scheduled to mature on 17 March 2016, which bore interest at LIBOR plus 5.0% per annum with a LIBOR floor of 2.0% and was priced at 98% of par value.
A secured loan is one that is backed by collateral that you pledge against the value of the loan.