Security

The property that will be given or pledged as collateral for a loan.

The property that will be pledged as collateral for a loan.

The term "security" covers a broad variety of financial instruments, including stock, promissory notes, bonds, debentures, limited partnership interests and "investment contracts." Courts have defined "investment contract" to refer to an investment of money in a common enterprise with an expectation of profit to come solely or substantially from the efforts of a promoter or a third party. Under Connecticut law, insurance products regulated by the Connecticut Insurance Commissioner are not "securities."

Traditionally, a security was a physical document, such as stock or bond certificate, that represented your investment in that stock or bond.

But with the advent of electronic recordkeeping, paper certificates have increasingly been replaced by electronic documentation.

In current general usage, the term security refers to the stock, bond, or other investment product itself rather than to evidence of ownership.

Property pledged to the creditor in case of a default on a loan; collateral.

1. A condition that results from the establishment and maintenance of protective measures that ensure a state of inviolability from hostile acts or influences. [JP1] 2. With respect to classified matter, the condition that prevents unauthorized persons from having access to official information that is safeguarded in the interests of national security. [After JP1] 3. Measures taken by a military unit, an activity or installation to protect itself against all acts designed to, or which may, impair its effectiveness. [JP1] 4. The combination of confidentiality, integrity and availability [ITSEC]. 5. The protection of computer hardware, software, and data from accidental or malicious access, use, modification, destruction, or disclosure. Tools for the maintenance of security are focused on availability, confidentiality, and integrity [POSIX.0]. 6. The combination of confidentiality, integrity, and availability [POSIX.6].