Secured Transaction Legal Meaning and Definition

Here is a simplified definition of the legal term Secured Transaction.

Secured Transaction (n) A legal agreement where a borrower or renter provides an item of equal value (such as property or goods) as a guarantee for the return of loaned money, rented property or goods. This ensures the lender or owner that they will be compensated if the borrower fails to meet repayment terms or the renter damages the rented items.