authentication Signature in paper form or by a symbol that identifies a person when a document is in electronic form.

calculation of deficiency A balance still remaining on the loan, after the sale or disposition of the collateral has been applied to the outstanding loan balance.

collateral Property acceptable as security for a loan or other obligation.

continuation statement Extends the original financing statement an additional five years. Can be filed six months prior to the original financing statement's expiration date.

cross-collateral clause This allows the credit union to hold the same collateral as security on more than one loan for the member.

default When the borrower fails to repay the loan or fails to fulfill any other condition of the loan.

electronic chattel paper Writings that evidence both a monetary obligation and a security interest.

financing statement Filed by the credit union in the appropriate office of public records. Once filed, the credit union is given priority over other possible claims to the collateral or security that has been pledged to the loan.

foreclosure The legal proceedings initiated by a creditor to repossess collateral for a loan that is in default.

guarantor One who guarantees the debt.

investment property Property that is owned for the purpose of generating income or profit.

letter-of-credit right A right to payment and performance under a letter of credit, whether or not the beneficiary has demanded or is at the time entitled to demand payment or performance.

lien The right to take and hold or sell a debtor's collateral as security for payment of a debt or duty.

secured debt A debt that is secured with collateral.

secured party The credit union or those parties with a security interest in the collateral on the loan.

security agreement The security agreement is usually included with loan documents signed by the borrower. The agreement states the specific collateral being offered to secure the loan.

security interest Also known as an attachment. Created when a debtor signs the security agreement that pledges personal property as security for a loan.

set-off rights The right of set-off is the right to repayment of a debt owed to the credit union that can be taken from funds in the person's account.

termination statement A form that must be filed by the credit union when a secured loan is paid in full.