Small Business Related Security Law and Legal Definition

The term small business related security means a security that is rated in one of the four highest rating categories by at least one nationally recognized statistical rating organization, and either:

a. represents an interest in one or more promissory notes or leases of personal property evidencing the obligation of a small business concern and originated by an insured depository institution, insured credit union, insurance company, or similar institution which is supervised and examined by a Federal or State authority, or a finance company or leasing company; or

b. is secured by an interest in one or more promissory notes or leases of personal property, with or without recourse to the issuer or lessee and provides for payments of principal in relation to payments, or reasonable projections of payments, on notes or leases. [15 USCS § 78c].