Reese applies for a credit card at Sell-Mart. The application gives Sell-Mart a security interest in any goods that Reese buys with the card until she pays for them in full. In this situation, the secured party is
A) Reese.
B) Sell-Mart.
C) the credit card.
D) the goods that are bought with the credit card.

Question

Quizplus · Accepted Answer

Sell-Mart is the secured party because they have a security interest in any goods that Reese buys with the card until she pays for them in full. This means that Sell-Mart has the right to take possession of the goods if Reese fails to make the required payments. Reese is the debtor in this situation, and the credit card is just a means of accessing credit. The goods that are bought with the credit card are the collateral for the security interest.

Reese Applies for a Credit Card at Sell-Mart