IVA Glossary
S
Security
The term security refers to the charge or more frequently, to the mortgage over an asset that is constituted in order to secure that the debt will be paid back. If this debt repayment is not happening, the lender has legal rights to foreclose the mortgage, namely, to take away the debtor's security.
It is therefore said to be urging for those debtors who have a secured debt to pay it back, otherwise their creditors can sell the charged asset they provided as a security against the loan.
It should be noted that due to the high value of securities, the security documents proving the existence of a security are usually very complex. For instance, a mortgage over a house means that a person taking out a mortgage loan guarantees the repayment of the loan by providing a property as a security. This means that if the borrower cannot meet the loan's requirements, the security will legally belong to the secured creditor. This is a very serious issue, so the documents to take out such a loan are of a very complex nature.
It is therefore said to be urging for those debtors who have a secured debt to pay it back, otherwise their creditors can sell the charged asset they provided as a security against the loan.
It should be noted that due to the high value of securities, the security documents proving the existence of a security are usually very complex. For instance, a mortgage over a house means that a person taking out a mortgage loan guarantees the repayment of the loan by providing a property as a security. This means that if the borrower cannot meet the loan's requirements, the security will legally belong to the secured creditor. This is a very serious issue, so the documents to take out such a loan are of a very complex nature.
