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Secured, unsecured and shared loans explained
What should be documented about an asset used as security?
The security section should identify the asset and the interest granted over it. Ownership, use and disposal conditions can matter throughout the agreement, not only after a missed payment.
Ask which actions require consent and where the relevant registration or documents can be checked. The label secured does not describe every enforcement rule in every country.
Details
- The security section should identify the asset and the interest granted over it.
- Ask which actions require consent and where the relevant registration or documents can be checked.
- Separate quoted conditions from assumptions
- Locate the agreement version and date
- Ask how a change affects the remaining schedule
Security and collateral
Preparation means accurate information
Ask for the written breakdown and conditions of any alternative offer. Comparing with and without a product is meaningful only when the assumptions remain visible.