Secured Creditor Law and Legal Definition
A secured creditor means an individual or business that is having a claim against a debtor who has secured an amount from the creditor by a lien on the debtor’s property. A secured creditor has security from the owner’s default, and from minimizing amount that can be collected by other creditors. Most of the lenders prefer to lend as a secured creditor, because it ensures repayment of loan amounts due once a loan is established. Secured creditors always require the borrower to secure their loan somehow. A secured creditor secures his/her loan either by owning part title to a business, to a person’s assets like stock, loan or bond holdings or other forms of property. The property that is subjected to a lien is the secured creditor's collateral.
