Security Interest

The creditor's right to take property or a portion of property offered as security. A Security Interest is secured by either a security clause in a contract, or by a lien on property. If you have a JC Penny charge card, you are in a secured contract with the bank which issues the JC Penny charge card. If you have a title loan on your car, the creditor has a security interest in the car title until the bill is paid. This means that if you were to default on your car loan they would come and repossess your car.

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