Related Words

Unsecured: Describes a debt instrument, such as a debenture, that is backed only by the debtors promise to pay.

Unsecured Loan: An unsecured loan is a loan where the lender has no entitlement to any of the borrower's assets in the event of the borrower failing to make the loan repayments. Such a loan normally carries . . . View Full Definition

Unsecured Bond: When a bond isn't backed by collateral or security of some kind, such as a mortgage, that can be used to repay the bondholders if the bond issuer defaults, the bond is described as unsecured . . . View Full Definition

Unsecured Debt: Issue of a security for which there is no existing market. See: Seasoned issue.

Debentures (Unsecured Bonds): Bonds for which no collateral has been pledged.

Unsecured Creditor: A creditor who does not hold security (such as a mortgage) for money owed.

Debenture Stock: An unsecured bond whose holder has the claim of a general creditor on all assets of the issuer not pledged specifically to secure other debt. Compare subordinated debenture bond and collater . . . View Full Definition

Liquidator: Person appointed by an unsecured creditor in the United Kingdom to oversee the sale of an insolvent firm's assets and the repayment of its debts.

Significant Influence: A good faith loan that is unsecured and requires only the borrower's signature on the loan application.

Subordinated Debt: Subordinated debt generally refers to debt securities that have a secondary or lesser claim to the issuer’s assets than more senior debt, should the issuer default on its obligations. In fac . . . View Full Definition