Meaning and kinds of security

The term security is something given, deposited, or serving as a means to ensure the fulfillment or enforcement of an obligation or of protecting some interest in property.

The security, as herein before intimated, may be personal security, as when an individual becomes a surety or a guarantor; or a property or real security, as when a mortgage, pledge, antichresis, charge or lien or other device used to have property held, out of which the person to be made secure can be compensated for loss. Thus, a secured creditor is one who holds a security from his debtor for payment of the latter’s debts. (Navoa vs. Court of Appeals, 251 SCRA 545 [1995])

SOURCE: De Leon and De Leon, Jr. (2010). Comments and Cases on CREDIT TRANSACTIONS. 11th edition. ISBN 978-971-23-5535-6. Rex Books Store.