Secured creditor

Secured creditor,

Definition of Secured creditor:

  1. Lender who holds legally enforceable claim on a borrowers asset(s) of a liquidation value equal to or greater than the loan amount. Secured creditors are entitled to receive the proceeds of the foreclosure sale of the pledged asset(s) and, in case of a bankruptcy, must be satisfied before the unsecured creditor(s).

  2. A secured creditor is any creditor or lender associated with an issuance of a credit product that is backed by collateral. Secured credit products are backed by collateral; in the case of a secured loan, collateral refers to assets that are pledged as security for the repayment of that loan. In the event that a borrower defaults on the repayment of a secured loan, the property is forfeited to the secured creditor.

  3. Secured creditors can be various entities, although they are typically financial institutions. A secured creditor may be the holder of a real estate mortgage, a bank with a lien on all assets, a receivables lender, an equipment lender, or the holder of a statutory lien, among other types of entities.

How to use Secured creditor in a sentence?

  1. A secured creditor is any creditor or lender associated with an issuance of a secured credit product; a secured credit product is any credit product backed by collateral.
  2. Secured creditors can be various entities, although they are typically financial institutions.
  3. In the case of a secured loan, collateral refers to assets that are pledged as security for the repayment of that loan.
  4. Secured creditors may offer several different types of credit products with the option of securing these offerings through collateral, including personal loans, institutional loans for businesses, and corporate bonds.

Meaning of Secured creditor & Secured creditor Definition