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The young man knows the rules, but the old man knows the exceptions.
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Legal Definitions - letter security
The life of the law has not been logic; it has been experience.
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Definition of letter security
Letter security is a type of security that is restricted, meaning it has limitations on who can access it. It is a form of collateral that is given to guarantee the fulfillment of an obligation. This can include a promise to repay a loan with interest or to fulfill a contractual obligation.
Examples of letter securities include:
- Bonds
- Debentures
- Certificates of deposit
- Guarantees
These examples illustrate the definition of letter security because they are all forms of collateral that are used to guarantee the fulfillment of an obligation. For example, a bond is a type of letter security that is issued by a company or government to raise money. The bondholder is promised a fixed rate of interest and the return of their principal investment at a future date. If the company or government fails to fulfill this obligation, the bondholder can take legal action to recover their investment.
The law is a jealous mistress, and requires a long and constant courtship.
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Simple Definition
Letter security is a type of security that is restricted and provides assurance to a creditor that they will be repaid any money or credit extended to a debtor. It can also refer to an instrument that shows ownership rights in a company or other rights. Securities are different from other commodities because they represent rights in something else and their value depends on the financial condition of the promisor or the profitability of the corporation.
It is better to risk saving a guilty man than to condemn an innocent one.
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