Security Rights

Security rights refer to claims or interests that a creditor has over a debtor's assets to secure the repayment of a loan or obligation. Essentially, if a borrower fails to repay, the creditor has the right to take possession of the specified assets to recover their money. These rights can be established through various legal agreements, like mortgages or pledges. They provide assurance to creditors that they have a way to recoup their losses, which can make lending more secure and accessible for borrowers, as it reduces the risk for lenders.