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Secured Party - Secured Party

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The owner and holder of evidence of debt (e.g., a promissory note), which debt is secured by a lien against the debtor’s property. In the event of non-payment, the property can be foreclosed to satisfy the debt, pursuant to rights created by the lien instrument. With regard to real estate, the most common secured party is a lender, whose loan is secured by a mortgagee (or a deed of trust).