unsecured
adjective
, -ˈkyərd\
Definition of unsecured
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Synonyms & Antonyms for unsecured
Synonyms
insecure, lax, loose, loosened, relaxed, slack, slackened
Antonyms
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Examples of unsecured in a Sentence
Recent Examples on the Web
The Bankruptcy Code creates a committee of unsecured creditors – those without assets backing their claims – to advocate on behalf of claimants who are likely not involved in the case. — Lindsey Simon, The Conversation, "Why companies file for bankruptcy – and how it protects both debtors and creditors," 29 Aug. 2019 Creditors that lend money under riskier conditions — unsecured creditors — come next. — Anneken Tappe, CNN, "Elizabeth Warren wants to change the bankruptcy code. Here's what that could mean for American workers," 5 Aug. 2019 Top unsecured creditors include the Yetter Coleman law firm, which is owed $2.9 million, as well as Walt Disney Studios, SONY Pictures, Universal Film Exchange and Paramount Pictures. — David Lyons, sun-sentinel.com, "iPic theater chain files for bankruptcy protection and seeks buyer," 5 Aug. 2019 Murphy wants Necco’s former suppliers and other unsecured creditors to be fully reimbursed for the bills left unpaid by the candy company’s demise last year, a figure that totals at least $20 million. — Jon Chesto, BostonGlobe.com, "Necco dispute clears hurdle in bankruptcy court," 24 July 2019 In other troubled deals, any unsecured debt would take the brunt of the losses first, cushioning the blow. — Los Angeles Times, "A leveraged loan collapses, revealing a key risk in credit market," 16 July 2019 While the Bells’ case is not directly tied to the auction, their names are among a long list of unsecured creditors hoping to recover money from Johnson Publishing. — Robert Channick, chicagotribune.com, "Bankrupt Johnson Publishing is set to auction off its Ebony photo archives, but it still faces $5 million defamation lawsuit over gym-mat death coverage," 12 July 2019 Appearing in court in black yoga pants, a red tank top and a grey jacket, Anglin was scheduled to be released on a $100,000 unsecured bail. — Natalie Weber, Houston Chronicle, "Richmond woman indicted on four counts including fraud, false statements," 5 June 2019 He was charged with simple assault and released on $5,000 unsecured bail. — Benjamin Brown, Fox News, "Maryland man had dog leash around wife's neck at Pennsylvania fair, authorities say," 19 Sep. 2018These 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.
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More Definitions for unsecured
unsecured
adjectiveFinancial 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.
Source: Investing Answers
unsecured
adjective
English Language Learners Definition of unsecured
See the full definition for unsecured in the English Language Learners Dictionary
unsecured
adjective