From Conservapedia

Jump to: navigation, search

Security in law or business meaning rights in property that protect a lender against loss if the borrower defaults, or fails to repay, a loan. When a piece of property is used as security for a loan, the lendor has a security interest in such property. It is important to distinguish between security interests and securities, which are stocks and bonds that represent equity or debt interests, respectively, in a corporation or other entity.

The laws concerning security interests are separated into laws concerning personal property and laws concerning real property. Security interests in personal property are governed by Article 9 of the Uniform Commercial Code, a form of which is in force in each state. Security interests in real property are governed by the mortgage laws of each state, which vary considerably among the states.

Personal tools