What is Security interest?
A '''security interest''' is a [[legal]] [[wikt:claim|claim]] on [[collateral (finance)|collateral]]. The collateral can be [[real estate]], [[personal property]] or any [[asset]]. Collateral is usually used to secure a [[loan]].<ref name=IP>{{cite web |url=http://www.investopedia.com/terms/s/security-interest.asp |title=Security Interest |publisher=Investopedia |access-date=27 October 2015}}</ref> The [[wikt:borrow|borrow]]er is the party who borrows the funds. The [[wikt:lend|lend]]er is the one who lends the [[money]] in return for a security interest. The lender can [[Repossession|repossess]] the asset if the borrower fails to repay the loan. The lender can then sell the asset to repay the loan.<ref name=IP/> A loan secured by collateral is called a ''secured loan'' (also called a [[lien]]). A loan with no collateral (such as a [[credit card]]) is an unsecured loan. There is nothing for the lender to repossess. == Different types == There are different types of security interest or liens:<ref>{{cite web |url=http://www.bizfilings.com/toolkit/sbg/run-a-business/assets/different-lien-types-change-creditors-rights.aspx |title=Different Lien Types provide Creditors with Different Rights |date=24 May 2012 |publisher=Business Filings Incorporated |access-date=27 October 2015}}</ref> * '''Consensual agreements''' are entered into consensually between a borrower and a lender. For example, a borrower may want to purchase a [[car]] or [[house]] and the property purchased secures the buyer's obligation to pay for the property. *'''Statutory liens''' are security interests that may be secured by [[Law|statutes]]. **'''Mechanic's Liens''' are those that come about when a mechanic or contractor is not paid for work they performed. The owner may not sell the property (real or personal) until the [[debt]] is paid. **'''Tax Liens''' are a type of lien that is placed against property by the local, state or federal [[government]]. They are authorized by statute, for delinquent [[tax]]es, including property, income and estat