Asked by
Jakob zum Kolk
on Nov 21, 2024
Verified
When a debtor uses collateral to secure a loan from a bank, a purchase-money security interest is created.
Purchase-Money Security Interest
A legal claim that allows a lender to repossess or foreclose on property if the borrower fails to repay a loan used to purchase the property.
Collateral
Assets pledged by a borrower to secure a loan or credit, which can be seized by the lender if the borrower fails to make required payments.
Secures
Generally refers to providing protection or ensuring the enforcement of a legal agreement, often involving financial assets as collateral.
- Familiarize yourself with the dynamics of secured transactions and the crucial role played by a security agreement.
- Specify the essential conditions for a valid security agreement under the provisions of the Uniform Commercial Code.
Verified Answer
MA
Learning Objectives
- Familiarize yourself with the dynamics of secured transactions and the crucial role played by a security agreement.
- Specify the essential conditions for a valid security agreement under the provisions of the Uniform Commercial Code.