Security Interest

Security Interest a authorized claim on collateral which has been pledged, usually to get a loan. The borrower supplies the lender with a security involvement in certain assets that can be repossessed if your borrower stops producing loan payments. The lender will sell the repossessed collateral to settle the loan. Granting a security interest would be the norm for loans for example auto loans, loans and mortgages; these are generally called secured lending options.