A security agreement must contain a description of the collateral that reasonably identifies it.

Question

Quizplus · Accepted Answer

This is true according to the Uniform Commercial Code (UCC) provisions for security agreements, which require a description of the collateral that reasonably identifies it. This is essential for any lender or secured party to properly identify and recover the collateral in the event of default or non-payment.

A Security Agreement Must Contain a Description of the Collateral