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Security
Practical Law ANZ Glossary w-018-3733 (Approx. 2 pages)
Glossary
Security
In the context of a finance transaction, security may refer to:
- Any right or interest in property granted by one party to another to secure the fulfilment of an obligation.
- Any property given, deposited or pledged by one party to another to secure the fulfilment of an obligation.
The obligation secured is usually the repayment of a debt, though may also be the performance of non-payment obligations.
For example, in a secured loan financing, the borrower (or other obligor) may grant to the lender a security interest in collateral and a mortgage over land as security for the performance of its obligations under a facility agreement.
For the purposes of the Companies Act 1993, securities may refer to the security of a body corporate.