Recent Examples of unsecured from the Web
It had been left standing against a light pole, unsecured, in front of Valley Lodge Tavern, 1141 Central Ave.
There’s very little question that this particular shooting was able to occur because the teenager involved was, allegedly, able to get access to an unsecured firearm.
The only way for such laws to be enforced before guns were used by children would be if a search warrant had been executed for another reason and an unsecured weapon was found.
Decide on a loan type There are two main types of personal loans: secured and unsecured.
Crump and Rogers said the officer then placed Wall under arrest and transported him in a police van while a K-9 who was unsecured inside snapped at him.
Nine West has received $300 million in financing and has a restructuring agreement with parties that hold or control the vast majority of its secured and unsecured term debt.
The annual interest payments on convertible securities also can be a few percentage points lower than rates on traditional unsecured bonds.
Prosecutors did not seek his detention, so U.S. Magistrate Judge Richard B. Farrer released him on $50,000 unsecured bond and set his case for a probable cause hearing on May 11.
These example sentences are selected automatically from various online news sources to reflect current usage of the word 'unsecured.' Views expressed in the examples do not represent the opinion of Merriam-Webster or its editors. Send us feedback.
Financial Definition of UNSECURED
What It Is
In the finance world, a lender or piece of debt is unsecured if it does not have collateral.
How It Works
Let's assume you would like to borrow $100,000 to start a business. Even if you have an excellent credit rating, a bank may be reluctant to lend you the money because it may be left with nothing if you default on the loan. Thus, although banks may attempt the lengthy and expensive process of suing you in that circumstance, the bank may require $100,000 of collateral -- security -- in order to lend you the money. This collateral might consist of financial instruments, houses, cash, or even objects such as art, jewelry or other items. You might pledge your business receivables as well. When you pledge these assets, you are collateralizing the loan.
If you do default on the loan, the loan agreement gives the lender the right to seize then sell the collateral in order to recover any outstanding balance.
For individuals, credit cards are the most common example of unsecured debt. There is no collateral backing your Visa bill that Visa can seize if you don't pay your bill.
Why It Matters
If the creditor has claim to some of your assets -- say, a deposit you made, a lien on your house, the title to your car -- that creditor is a secured creditor. If the creditor has no ability to claim some of your assets when you don't pay (this is often the case with credit cards), the creditor is unsecured. If you have borrowed money from a bank, the bank may ask you for collateral as a way of securing the loan.
An unsecured creditor takes on more risk than a secured creditor because it does not have the ability to seize an asset right away if a borrower fails to repay the debt. Creditors may of course sue to obtain access to accounts or other assets if the borrower has not paid, but that is more expensive than requiring collateral up front. Regardless, this lack of security increases the creditor’s risk, which in turn increases the interest rates on unsecured loans.
legal Definition of unsecured
- unsecured debt
- an unsecured claim
- unsecured status
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Thesaurus: All synonyms and antonyms for unsecured
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