Credit Risk Mitigation

Collateral Valuation: Credit Risk: Termination or the extinguishing of Security Interest

2 mins read

Previously we discussed the creation, perfection and enforcement of security interest in collateral. In this post we will consider the situations where and the manner in which security interest is terminated. We will also consider the disadvantages to the lender of holding on to security interest and collateral after full repayment of debt has been made.