what is security interest
1. Basic Definition. A security interest is a right by a creditor to have a specific item or items of property sold to satisfy the debt owed to the secured party. In order to enforce a security interest against other creditors and in bankruptcy, the security interest must be properly created and perfected. 2. Perfection Generally. The most common example of a security interest is a mortgage on real property. In order to be enforceable against other creditors or the bankruptcy trustee a mortgage must be duly recorded.