Secured Transaction

secured transaction is a loan or a credit transaction that lender acquires a security involvement in collateral owned because of the borrower and is eligible for foreclose on or maybe repossess the collateral in case of the borrower’s default. The terms of the relationship are governed by way of contract, or stability agreement. A common example has to be consumer who purchases a vehicle on credit. If the consumer fails for make the payments promptly, the lender requires the car in addition to resell it, applying the proceeds of the sale toward the loan.