security interest


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Security interest

The creditor's right to take property or a portion of property offered as security.

Security Interest

A creditor's legal right to take possession of certain property offered as security or collateral. For example, in a margin account, the brokerage making the margin loan may require its client to deposit some or all of the borrowed securities with the brokerage. The right of the brokerage to demand that is its security interest.

security interest

Rights in property, voluntarily granted by a borrower to a lender, so that the property may serve as collateral for a loan and be subject to seizure and sale in the event of default.

References in periodicals archive ?
Also, the DOF had said the PPSA 'simplified the process as security interest may be perfected by registration of a notice with the registry, possession of the collateral by the secured creditor or by control of investment property and deposit account,' such that 'on perfection, a security interest becomes effective against third parties.'
If a consignment transaction fails to meet the rigid definition of a consignment under UCC Section 9-102(a)(20), the consignor may still enjoy prior rights to its consigned goods if it can prove that the transaction is a "true consignment" under state law, True consignments are not governed by UCC Article 9; therefore, true consignments do not require a consignor to file a UCC financing statement and provide notice of its consignment interest to secured creditors with a prior perfected blanket security interest in the consignee's inventory as a condition for having priority status in the consigned goods.
April Kuehnhoff, an NCLC staff attorney, said the decision was narrow, limited to defendants whose "principal purpose" is the enforcement of security interests.
Given the language of the CSA (particularly referencing paragraph 5(b) of the CSA), whereby it is made clear that the Transferee receives the Eligible Credit Support free and clear from all restriction and that the intention of the parties is, in essence, a "true sale," and that no security interest is created by virtue of the transfer.
Proprietary matters encompass the legal issues regarding the security interest itself, including its creation, perfection and priority.
In this regard, a security interest is typically created by agreement.
* What Is Perfection Of A Security Interest And How Is It Accomplished;
At what point, along the continuum of transactions incorporating or featuring the right of set-off, (5) is a PPSA security interest created?
Martino argued that when she signed a pre-approval letter for the credit card, the pre-approval acceptance certificate did not indicate contain any language about security interest.
Negotiating a security interest is always a tricky thing.
In contrast, the deemed security interest arises 'whether or not the transaction concerned, in substance, secures payment or the performance of an obligation.
Pursuant to a much-criticised legal provision in Bulgaria, if a balance sheet insolvent debtor is declared judicially insolvent, this will invalidate by operation of law: (i) any performance of a financial obligation and (ii) any creation of a security interest over any asset of the insolvency estate, in each case, made after the debtor became balance sheet insolvent.

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