To create an enforceable security interest, the collateral must be held by a neutral third party until the debt is paid.

Name: To create an enforceable security interest, the collateral must be held by a neutral third party until the debt is paid.
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A security interest can be enforceable without the collateral being held by a neutral third party; it typically requires a security agreement, value given, and the debtor's rights in the collateral.

To Create an Enforceable Security Interest, the Collateral Must Be