1. An item of intangible property representing one interest in an investment (such as the capital of an enterprise or a loan raised for a person) which is the subject of many interests owned in common by many persons (or capable of being owned by many persons), and which is controlled and managed by a person (called the ‘issuer’ of the security) who pays to the owner of the security the returns offered by the investment. 2. In relation to a debt, a right to have property of the debtor utilised to pay the debt (otherwise than on execution of a judgment for the debt), or a lien over property of the debtor (‘direct security’); or a right to call on another person to pay the debt if the debtor does not pay it (‘third-party security’ or ‘collateral security’). In America, the term ‘collateral’ is used for both direct security and third-party security.


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