Secured transaction

Okay kiddo, let's say you want to buy a toy from a store. The store wants to make sure they get their money back, so they ask you to give them something valuable like your favorite superhero action figure. They will keep it until you pay them for the toy.

This is called a "secured transaction". The toy store has "secured" the transaction by taking something from you that they will keep until you pay them back.

In the adult world, businesses and people do this all the time when they want to borrow money. They might give the lender something valuable, like a car or a piece of property, as collateral. If they can't pay back the money they borrowed, the lender can take the collateral and sell it to get their money back.

So, a "secured transaction" is like a promise to give something valuable as a guarantee that you will pay back what you borrowed. It's a way to make sure everybody is happy and gets what they need.