Secured Creditor

AAA

DEFINITION of 'Secured Creditor'

Any creditor or lender that takes collateral for the extension of credit, loan or bond issuance. In the arena of personal finance, the most well-known secured creditors are mortgage lenders whose loans are secured either by a first or second lien on a property.

INVESTOPEDIA EXPLAINS 'Secured Creditor'

Secured creditors have the most senior protection in bankruptcy, since they have specific assets that collateralize their loans. Secured creditors also generally have the right to repossess or foreclose on the property against which a lien is held when the borrower is in default.

RELATED TERMS
  1. Cram-Up

    A situation in which junior classes of creditors impose a cram-down ...
  2. Termination Statement

    A statement that releases a lender's claim on property or collateral ...
  3. Notice To Creditors

    A public notice to the creditors and debtors of an estate. The ...
  4. Creditors' Committee

    A group of people who represent a company's creditors in a bankruptcy ...
  5. Bankruptcy

    A legal proceeding involving a person or business that is unable ...
  6. Collateral

    Property or other assets that a borrower offers a lender to secure ...
Related Articles
  1. What effect did the Bankruptcy Abuse ...
    Investing

    What effect did the Bankruptcy Abuse ...

  2. In a corporate liquidation, why are ...
    Credit & Loans

    In a corporate liquidation, why are ...

  3. Saving Your Home From Foreclosure
    Options & Futures

    Saving Your Home From Foreclosure

  4. An Overview Of Corporate Bankruptcy
    Bonds & Fixed Income

    An Overview Of Corporate Bankruptcy

comments powered by Disqus
Hot Definitions
  1. Accounts Payable - AP

    An accounting entry that represents an entity's obligation to pay off a short-term debt to its creditors. The accounts payable ...
  2. Ratio Analysis

    Quantitative analysis of information contained in a company’s financial statements. Ratio analysis is based on line items ...
  3. Days Payable Outstanding - DPO

    A company's average payable period. Calculated as: ending accounts payable / (cost of sales/number of days).
  4. Net Sales

    The amount of sales generated by a company after the deduction of returns, allowances for damaged or missing goods and any ...
  5. Over The Counter

    A security traded in some context other than on a formal exchange such as the NYSE, TSX, AMEX, etc. The phrase "over-the-counter" ...
  6. Earnings Before Interest After Taxes - EBIAT

    A financial measure that is an indicator of a company's operating performance. EBIAT, which is equivalent to after-tax EBIT ...
Trading Center