Unsecured debt


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Unsecured debt

Debt that does not identify specific assets that the debtholder is entitled to in case of default.

Unsecured Debt

A debt that is not secured by an asset or lien, but rather by the all issuer's assets not otherwise secured. This means that an unsecured debt carries no collateral; in case of bankruptcy, the debt holder is considered a general creditor. Thus, the debt holder is paid out of funds that do not have a prior claim on them with a secured debt. Some unsecured debts, such as Treasury securities, are considered risk-free.
References in periodicals archive ?
BANKING AND CREDIT NEWS-October 21, 2011--Turk Eximbank gets (P)Ba1 foreign-currency senior unsecured debt rating from Moody's(C)2011 M2 COMMUNICATIONS http://www.
M2 EQUITYBITES-October 21, 2011--Turk Eximbank gets (P)Ba1 foreign-currency senior unsecured debt rating from Moody's(C)2011 M2 COMMUNICATIONS http://www.
Under the House bill, a debtor making more than the national median income for the same size household who can repay 20% of his or her unsecured debt over a five-year period would not be eligible for Chapter 7.