Security Interest - Defined

The video tutorial explains the concept of a security interest, which is a legal claim on property to secure an obligation, such as a loan. It provides an example of how a lender can secure a loan by claiming a security interest in the borrower's property. If the borrower fails to repay, the lender can reclaim the property to recover the debt. The video contrasts this with unsecured creditors, who have no such claim. It also covers the main types of security interests, including those in real estate and physical property, governed by the Uniform Commercial Code.

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