Secured Liability Clause Samples

The Secured Liability clause defines the specific debts, obligations, or liabilities that are covered or protected by a security interest under an agreement. In practice, this clause outlines which financial obligations—such as loans, advances, or other forms of credit—are secured by collateral provided by the borrower. For example, it may specify that all present and future debts owed to the lender are included, or it may limit coverage to a particular loan. The core function of this clause is to clearly delineate the scope of obligations that the security interest applies to, thereby reducing ambiguity and ensuring both parties understand the extent of the secured party's rights in the event of default.