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![Eric Gros-Dubois](https://www.epgdlaw.com/wp-content/uploads/2023/02/897683fd4e367e872a984f0ca852a1ac.jpeg)
What is a Security Interest?
A security interest occurs when a debtor, which can be a person or business, borrows money from a creditor or more specifically a secured party and they agree to execute a security agreement. In the event the debtor defaults by not paying back the loan or by violating a provision in the agreement, the secured party can seize the collateral and may sell it to satisfy the debt.