A Secured Party is an individual or entity that holds a security interest in collateral to secure a debt or obligation. This means they have a legal right to take possession of the collateral if the borrower fails to meet their obligations. Common examples of secured parties include banks and financial institutions that provide loans backed by assets. In the context of secured transactions, the secured party typically files a financing statement to publicly declare their interest in the collateral. This process is often governed by laws such as the Uniform Commercial Code (UCC) in the United States, which helps protect the rights of secured parties and borrowers.