Debt, credit & capital structure · Core

Security interest

Also called: collateral security

ELI5

A legal interest in assets supporting repayment or performance.

Used in conversation

“Can we state who receives the right created by security interest, and when it applies?”

Pitch context

You will see “Security interest” in financial models, budgets, board packs and investor materials when the discussion reaches debt, credit & capital structure.

Why it matters: In debt, credit & capital structure, a loose definition can change rights, obligations, approval, disclosure or enforceability.

Caution

Meaning, enforceability and required process vary by jurisdiction and agreement; this definition is not legal advice.

Sources & evidence · 5

Direct term-level sources and supporting source families.