To create an enforceable security interest, the secured party must give something of value to a debtor's other creditors.

Question

Quizplus · Accepted Answer

To create an enforceable security interest, the secured party must give something of value (such as a loan) to the debtor, not to the debtor's other creditors. The security interest gives the secured party the right to take possession of or sell the collateral if the debtor defaults on the loan.

To Create an Enforceable Security Interest, the Secured Party Must