Which term is defined as property that is pledged as security on a loan?
DEFINITION of 'Security Agreement'. A document that provides a lender a security interest in a specified asset or property that is pledged as collateral.In the event that the borrower defaults, the pledged collateral can be seized and sold. A security agreement mitigates the default risk the lender faces.Next Up.EFINITION of 'Security Agreement'. A document that provides a lender a security interest in a specified asset or property that is pledged as collateral.