Security & Collateral · glossary
A claim on a particular asset, which a lender can have sold if it is not repaid. A secured lender is paid from the price before the other creditors. An unsecured lender holds only a promise and shares what is left. Definition: Security Assets · Chapter 1
Explained in Chapter 1, What Security Is For, of Security & Collateral.
A lender takes security when it wants more than a promise to repay. If the loan is not repaid, it can have particular assets of the borrower sold and pay itself first from the price. A company usually gives all its security to a bank in one document, a debenture. You are a trainee in the banking team at Harlow Vance LLP in Birmingham, and you act for the bank.Read Chapter 1, What Security Is For →
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all the assets of the Company which are, or are expressed to be, subject to the security created by this Debenture;Read the definition in the document →
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This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open Security & Collateral → · All terms A–Z →