Whats a secured loan and List 3 examples of them?

Characteristics of security interests

Equal parts into which the capital stock of a company is divided. With these, the capital of the company (issuer of shares) is financed, granting the shareholder property and rights proportional to the amount of shares under its possession.

All assets owned by the company. It is a resource from which economic benefit is expected to be obtained, based on its potential to contribute to income generation or cost reduction.

Different investment transactions in securities and rights to real estate of immediate realization or documents expressive of credit, which generate such securities. These investments may vary between equity investments in other companies, loans to the company’s own personnel, credits on other entities, preferential subscription rights or options.

That part of the income that is not spent on consumer goods and services. The purpose of this reserve is to provide for future contingencies or to make an investment. It constitutes the difference between income and expenses. These securities are generally deposited in financial institutions in exchange for interest; banks use such deposits to grant loans or make investments. It is therefore believed that there is a relationship between savings, investment and capital formation.

Example of a mortgage security interest

The personal guarantee is subjective, since it is not associated with anything concrete but with the commitment of a person with another person or entity (for example, the commitment to pay the mortgage installments). However, in some cases the personal guarantee is reinforced by a guarantor, so that if the debtor does not fulfill its obligations, the guarantor will have to assume the debtor’s commitment with its assets.

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Loans based on personal guarantees are based on the debtor’s own solvency, so this type of loan is not associated with a mortgage or any other type of guarantee. The holder of a personal guarantee loan may be an individual or a legal entity (e.g. a limited liability company). On the other hand, it is also possible that there are two holders and in this case the personal guarantee could be of two types: joint and several (the one who lends the money can claim it from any of the holders) or joint and several (each holder would respond for a part).

Security interest and personal guaranty examples

A security interest (as opposed to a personal guaranty) is a legal contract or business

Security interest and personal guaranty examples

A security interest (as opposed to a personal guaranty) is a legal contract or business

Whats a secured loan and List 3 examples of them?
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