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Practical Law ANZ Glossary w-013-7226
(Approx. 3 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
.
Other forms of security arrangements include
charges
,
liens
,
pledges
and
bailments
.
If referring to the security of a
body corporate
for the purposes of the
Corporations Act 2001
(Cth)
, see
securities
.