Secured loan

A word about credit risk mitigation →Go uptown Legal security: Mortgage • Pledge • Lien • Bailment Equitable security: Charge • fixed • floating | ABWOS | Equitable lien Credit risk mitigation: Title transfer | Guarantee | Letter of credit | Netting Friends and relations: Rehypothecation | Equivalent Documents: 1994 NY CSA | 1995 CSA | 1995 ISDA CSD (English law) Regulation: LPA 1925 | Financial Collateral Regulations | LPMPA 1994 Index: Click ᐅ to expand: Taking security Security Collateral Tell me more Sign up for our newsletter — or just get in touch: for ½ a weekly 🍺 you get to consult JC. Ask about it here.

A secured loan is a loan where the borrower grants the lender a security interest over its property to mitigate the credit risk.

A home loan is a great example. The Lender gives you money; you grant the lender a mortgage over the title to your house.

Not all forms of collateral are security interests of course: title transfer collateral arrangements, for very good example. So something can resemble a secured loan without actually being one.

A repo resembles a secured loan, but isn’t either secured or, for that matter, a loan. Likewise, a stock loan is not a loan and nor is it secured, unless you are using the new pledge GMSLA form, in which case it is secured, but still is not a loan.