Definition - What does Secured Transaction mean?
The term "secured transaction" refers to a security arrangement where the lender may take property or any other asset as collateral if the borrower defaults on payment. The Uniform Commercial Code forms the basis of all the regulations governing secured transaction.
Justipedia explains Secured Transaction
Under the agreement of a secured transaction, the secured party (lender) is guaranteed that if the debtor goes bankrupt or is otherwise unwilling or unable to pay, he or she will be allowed to recover the loan amount by taking control of the collateral.