How would you define "Secured Account" in a legal contract? (2024)

FAQs

How would you define "Secured Account" in a legal contract? ›

Secured Account means any account for which the related obligor has pledged assets or made a cash collateral deposit as security for payment of receivables that arise in such an account.

Secured Account means an Account for which the customer is required to maintain a Collateral Deposit with the Bank as collateral for the payment of the Debt in such Account.

In a secured bank account, the depositor's funds are held in an account that is secured by collateral. This collateral, often in the form of cash, marketable securities, or other valuable assets, serves as a guarantee to the bank that the depositor will fulfill their financial obligations.

Security means safety, as well as the measures taken to be safe or protected.

By turning on Safer Credit Building, you authorize Chime to automatically make transfers from your Secured Deposit Account to your Card Account to pay off the monthly Billing Statement's Total Due (terms as defined in Chime Credit Card Agreement) for that Card Account.

Secured Account means any account for which the related obligor has pledged assets or made a cash collateral deposit as security for payment of receivables that arise in such an account.

Secured loans require some sort of collateral, such as a car, a home, or another valuable asset, that the lender can seize if the borrower defaults on the loan. Unsecured loans require no collateral but do require that the borrower be sufficiently creditworthy in the lender's eyes.

IT security is a set of cybersecurity strategies that prevents unauthorized access to organizational assets such as computers, networks, and data. It maintains the integrity and confidentiality of sensitive information, blocking the access of sophisticated hackers.

There are four main types of security: debt securities, equity securities, derivative securities, and hybrid securities, which are a combination of debt and equity.

How do you know if a payment is secured? ›

SSL Certificates

Check for 'https://' at the beginning of the website URL and the padlock symbol in the address bar. This indicates that the site has an SSL certificate, suggesting that any data transferred is encrypted and secure.

With a secured credit card, the money you put down is a security deposit, which the card company holds in case you don't pay your bill. The money is not used to pay for purchases. If you provide a $200 deposit and then use the card to buy something for $50, you'll have to pay $50 when your bill comes.

With secured credit cards, you're spending money that you borrow from the credit card company. You pay that money back after the purchase. With prepaid debit cards, you're spending your own money. You load money onto the card before the purchase.

You will still get your security deposit back since the original account will be closed. However, some issuers may refund your deposit after a periodic account review for positive credit use. These account reviews search for on-time payments, spending within your credit limit and keeping your account in good standing.

A secured loan can help you build credit if you make all payments on time, but since secured loans are backed by collateral, there is risk involved. Other credit products could help you build credit without as much risk.

If you're a high-risk borrower, or if you're struggling to establish or build your credit history, a secured credit card might be a good option for you. Just be sure that you have cash available to cover the up-front deposit. Secured cards can be a helpful tool to improve your credit health over time.

Depending on the secured credit card you get, it might be possible to transition to an unsecured card with responsible use of your card. Not all card issuers follow the same guidelines when it comes to how long it takes for a secured card to become unsecured, although it typically ranges from six to 18 months.