Security Transactions and Mortgages

Secured transactions law deals with the formation and enforcement of security interests. A security interest arises when a borrower gives up something of value in exchange for a loan. The agreement lays out that if the borrower should default on the loan, the lender is entitled to take the collateral that the borrower has given as a security interest. Any security interest involving property is referred to as a mortgage. Listed below are common security transactions and mortgages terminology and their legal definitions.