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 ?
Privately-appointed receivers serve the secured creditor that appointed them and will deal with assets covered by the loan agreement.
If the value of the property is more than the claim, the liquidator may also convey the property to the secured creditor in payment of the claim but, in turn, the secured creditor must deliver the excess amount to the liquidator.
If the secured creditor can't raise enough cash, which is a real risk, you're taking out of the marketplace one of the most knowledgeable parties of the property.
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.
The failure of the insured to name the secured creditor on the policy, as required by the contract between the parties, did nor extinguish the secured creditor's interest in the property or impair its status as an equitable lienholder.
The secured creditor also can foreclose on a property or purchase a property at a foreclosure sale without CERCLA liability, so long as it holds the property temporarily.
So, if you are in default under your secured loan but your reorganization plan pays to the secured creditor the present value of his claim in a reasonable time period, the Bankruptcy Code allows you to cure the default and continue to use your pledged assets.
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.
In RadLax, the Seventh Circuit allowed a secured creditor the right to bid its claim, in other words, the amount of debt owed, in lieu of a cash bid as part of a plan confirmation process.
A secured creditor generally takes priority over other creditors.
The proposed rule removes much of the uncertainty facing lenders by interpreting the scope of the secured creditor exemption to the Comprehensive Environmental Response, Compensation and Liability Act (CERCLA), commonly known as the Superfund law.