Security
| Author | Jeffrey Lehman, Shirelle Phelps |
Page 79
Protection; assurance; indemnification.
The term security is usually applied to a deposit, lien, or mortgage voluntarily given by a debtor to a creditor to guarantee payment of a debt. Security furnishes the creditor with a resource to be sold or possessed in case of the debtor's failure to meet his or her financial obligation. In addition, a person who becomes a surety for another is sometimes referred to as a "security."
Page 80
A sample security agreement
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