A Secured Loan, which is just that, when an asset is used to secure the loan such as a house, car, stock, or company, and in the event the borrower cannot pay the loan, the sale of the asset is forced, acquired, or foreclosed. Thus, the collateral secures the debt of the lender of the loan, and the loan document would specifically define how such default would transpire to acquire the asset in the event the funds are unpaid or payments are missed. In many events and cases, I have used stock loan agreements, which is a loan secured by stock in a company. There were two such events that triggered, one was that I had to make payments to the lender, and if a payment was missed the stock could be sold to repay the loan immediately, or in other events, the stock could be sold by the lender if the price of the stock fell below a certain price over a 20 day consecutive period. Either way the terms where put in place and the loan was secured by the asset. The most common is with the home, such as, a home loan line of credit, where one gets lower interest rates and higher lines of credit for allowing a mortgage to be registered against the home for the value of the line of credit. From the creditor’s perspective this is a category of debt in which a lender has been granted a portion of the bundle of rights to specified property. The opposite of secured debt/loan is unsecured debt, which is not connected to any specific piece of property and instead the creditor may satisfy the debt against the borrower rather than just the borrower’s collateral. In the case of stock loans, often if the principal is not paid by the sale of the assets, the stock in this case, the remaining balance could possibly be an unsecured loan outstanding against the debtor.