Jurisdiction(s):
United Kingdom

Related legal acts

Key definition

security definition

What does security mean? In legal practice, security means money or other assets provided as a guarantee that a legal obligation will be performed, with forfeiture if it is not. In criminal proceedings, it most often refers to a cash deposit or equivalent required as a condition of bail to secure a defendant’s attendance at court and compliance with bail; failure to surrender may lead to forfeiture. The concept and procedures are set by bail legislation and court rules in each jurisdiction. Practice varies: in England & Wales and Northern Ireland, courts commonly take recognisances, with or without sureties, and may require a...

Granting Security by Borrowers: Types, Drafting and Negotiation, Directors’ Duties, Financial Assistance, Perfection and Registration, and Negative Pledges

Published by a LexisNexis Banking & Finance expert

Practice notes

Why do Lenders require security?

It is standard practice for lenders to seek security over a Borrower’s Assets as a condition of making loan facilities available. Granting security gives the lender specific rights over the secured property if the borrower does not repay, including the ability to sell those assets to clear the outstanding debt.

What types of security might a borrower be asked to provide?

The rights arising from a security interest vary with the form taken. Security may take the form of:

Mortgage—under a mortgage, legal and/or beneficial ownership of an asset is transferred to the lender for security, on the basis that it will be returned to the borrower once the debt is repaid or the obligations satisfied; an assignment by way of security is a form of mortgage (see Practice Note: Mortgages)
Charge—a charge, which may be fixed or floating, is an encumbrance over the asset that empowers the lender to sell the charged asset to repay the debt (see Practice Note: Fixed and floating charges)
Pledge—assets capable of delivery may be pledged,

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Web page updated on 21/05/2026

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