Security obtained through operation of law is known as a:
A)pledge.
B)bequest.
C)lien.
D)collateral.
E)mortgage.

Question

Quizplus · Accepted Answer

A lien is a type of security interest that is obtained automatically by operation of law, without the need for a formal agreement or contract. Liens can arise in various contexts, such as when a creditor has a right to take possession of a debtor's property to satisfy a debt. Examples of liens include tax liens, mechanic's liens, and judgment liens. Therefore, the best choice is C - lien.

Security Obtained Through Operation of Law Is Known as A