Security interest
Draft definition. Technical and editorial approval pending.
A claim granted over assets to secure obligations under a facility. It gives the provider rights against the collateral if specified conditions occur, but it does not transfer ownership at the moment of grant. Enforcement rights are conditional on the events and procedures set out in the documents and on the law of the relevant jurisdiction.
In practice
Your fictional SPV grants a security interest over USD 10m of receivables. The SPV still owns them and the servicer collects on its behalf. Enforcement depends on the agreement and applicable law. Separate account-control arrangements may operate before default; a security grant alone does not explain all control rights.
Read this in context: Anatomy of a Deal.