An interest in personal property or fixtures that secures payment or performance of an obligation is called a(n): ______.
A) guaranty holding.
B) security interest.
C) guaranty interest.
D) good-faith guaranty.

Question

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A security interest is a legal claim over a borrower's property that is granted to a lender as collateral for a loan or credit. This interest ensures that the lender can recover some or all of the loan amount if the borrower defaults on payment.

An Interest in Personal Property or Fixtures That Secures Payment