Secure Credit Inc. holds a security interest in inventory owned by Timber Products Inc. Secure can protect its claim to the inventory in the event Timber uses the inventory for a loan from another creditor by
A) assignment.
B) perfection.
C) redemption.
D) retention.

Question

Quizplus · Accepted Answer

Perfection is the process by which a secured party protects its interest in the collateral against claims from third parties, typically by filing a financing statement.