What is the 'Depository Trust Company - DTC'. The Depository Trust Company (DTC) is one of the world's largest securities depositories. The DTC, which was founded in 1973 and is based in New York City, is organized as a limited purpose trust company and provides safekeeping through electronic recordkeeping of securities balances.
To be prepetition property, the security interest must attach to the property. A security interest attaches to personal property upon satisfaction of three requirements: (1) the parties have an adequate security agreement, (2) the secured party gives value, and (3) the debtor has rights or the power to transfer rights in the personal property.
Security interest is a term that refers to the rights of a lender to gain control of pledged property in the event that a borrower defaults on a loan. While there are exceptions, when a debtor defaults on a secured loan, the lender has the right to seize control of the collateral pledged as security for the loan, and sell it as a means of settling the outstanding balance of the loan.