Jason is the creditor in a transaction with Carol,who is the debtor.Which of the following requirements is not necessary for Jason to have an enforceable security interest?
A)The collateral must be in Jason's possession,or there must be a written or authenticated security agreement.
B)Jason must give value to Carol.
C)Carol must have rights to the collateral.
D)The collateral must be tangible.

Question

Quizplus · Accepted Answer

The fact that the collateral must be tangible is not necessary for Jason to have an enforceable security interest. Intangible assets, such as accounts receivables or intellectual property, can also be used as collateral. However, the other requirements stated in choices A, B, and C are necessary for an enforceable security interest.

Jason Is the Creditor in a Transaction with Carol,who Is