Kyla holds a security interest in inventory owned by Luc. Kyla protects her claim to the inventory in the event of Luc's default by
A) assignment.
B) perfection.
C) redemption.
D) retention.

Question

Kyla holds a security interest in inventory owned by Luc. Kyla protects her claim to the inventory in the event of Luc's default by​
A) ​assignment.
B) ​perfection.
C) ​redemption.
D) ​retention.

Quizplus · Accepted Answer

Perfection is the process of taking certain steps to ensure that a security interest is recognized as valid and enforceable against third parties. By perfecting her security interest in Luc's inventory, Kyla protects her claim to the inventory in the event of default.

Kyla Holds a Security Interest in Inventory Owned by Luc