Oversecured Creditor

A secured creditor whose collateral is worth more than its claim. To the extent that the lender is oversecured, the lender is entitled to an allowed secured claim not just for the amount it is owed as of the commencement of the case but also for interest on its claim and for any reasonable fees, costs, or charges provided for under its loan documents. But oversecured status can be an impediment in stay relief litigation because the creditor cannot show that the debtor has no equity in the property.

Bankruptcy Code ยงยง 361, 362(d)(2), 506. See also 506(b), Adequate Protection, Stay Relief, Undersecured Creditor.

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