A person whose spouse has died within the tax year and who may file a joint tax return for that year. Additionally, the surviving spouse can file joint returns for the next two years if they remain unmarried and maintain a household as the principal residence for a dependent child.
Secured Debt
[si-KYURD det]
What is the definition of Secured Debt?
Debt that is backed by the pledge of collateral or other assets, providing the lender with a claim to specific property if the borrower defaults.
Using Secured Debt in an Example
A common example of secured debt is a mortgage loan, where the property being purchased serves as collateral. If the borrower fails to make the agreed-upon payments, the lender has the right to seize the property to recover the outstanding debt.
Using Secured Debt in a sentence
To finance the new equipment, the company took out a secured debt, pledging some of its assets as collateral to obtain better loan terms.
Related Terms
Swap
A financial contract in which two parties agree to exchange streams of payments over a specified period, based on different indices such as interest rates, foreign exchange rates, or equity indices, applied to a notional amount. Swaps typically do not involve the exchange of principal.
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