Where security devices are agreed to in advance as terms in the contract,they are often called

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When security devices are agreed to in advance as terms in the contract, they are consensual security interests. This means that the debtor voluntarily agrees to provide collateral to secure the debt, and the creditor consents to the agreement. This is in contrast to non-consensual security interests, which arise by operation of law (such as a mechanic's lien) or by court order (such as a judgment lien). Collateral security refers specifically to tangible assets that are pledged as security for a loan, while the pledge of assets is a broader term that can refer to any assets (including intangible assets) that are pledged as security for a debt. The creditor back-up system is not a common term used in the context of security devices.

Where Security Devices Are Agreed to in Advance as Terms