Generally, a security interest is an interest in real or personal property that is given to the seller to
secure the payment of an obligation owed by the purchaser. The holder of the security interest can
obtain the secured property in the event of a default. In regards to lending, a security interest is an
interest in property that is granted to a creditor. This is normally used to obtain a loan that the
creditor would not be willing to give without some sort of security. A security interest may also be
created by an operation of law to ensure the performance of the obligation where a debtor has
defaulted on a debt.
