In a _____, the owner-debtor gives a security interest in collateral to a creditor that allows the creditor to repossess the collateral if the owner defaults.
A) bailment
B) gift
C) secured transaction
D) lease
E) sale

Question

Quizplus · Accepted Answer

A secured transaction involves the owner-debtor giving a security interest in collateral to a creditor in exchange for a loan or other obligation. The security interest allows the creditor to repossess the collateral if the owner defaults on the obligation. A bailment, gift, lease, or sale do not involve a security interest and do not necessarily involve a creditor and debtor relationship.

In a _____, the Owner-Debtor Gives a Security Interest in Collateral