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of <h1>Understanding Security Interest in Section 3(31) of the Insolvency and Bankruptcy Code, 2016: Rights and Exclusions Explained</h1> Security interest, as defined in section 3(31) of the Insolvency and Bankruptcy Code, 2016, refers to a right, title, interest, or claim to property established in favor of a secured creditor through a transaction that ensures the payment or performance of an obligation. This includes mortgages, charges, hypothecation, assignments, and encumbrances, as well as any other agreement or arrangement securing such payment or performance. However, it explicitly excludes performance guarantees.
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