Satisfaction:
The discharge of an obligation by paying a party what is
due (i.e., the satisfaction of an IRS lien or the
satisfaction of a mortgage).
Seasoning:
The length of time payments have been made on a note or
other debt instrument.
Secondary market:
The marketplace where individuals and businesses can
sell privately held income streams to funding sources
for cash.
Securitization:
The bundling and resale of debt instruments to
investors; permitted only for parties licensed and
regulated by the SEC.
Security interest:
An interest in property, other than real estate, which
is given as security for a debt or other obligation. A
security interest is created by execution of a security
agreement and one or more financing statements under the
Uniform Commercial Code.
Seller:
The person or company that is holding a debt instrument
and wants to sell it.
Servicing:
The collection of payments of interest and principal,
and trust fund items such as fire insurance, taxes,
etc., on a note by the borrower in accordance with the
terms of the note. Servicing by the lender also consists
of operational procedures covering accounting,
bookkeeping, insurance, tax records, loan payment
follow-up, delinquent loan follow-up and loan analysis.
Sole proprietorship:
A business owned and operated by an individual.
Subordination:
The act of a creditor acknowledging in writing that a
debt due him or her by a debtor shall be inferior to the
debt due another creditor by the same debtor.
