An interest in fixtures that a creditor obtains to secure performance of an obligation is called a(n):
A) ownership equity.
B) financial leverage.
C) security interest.
D) income trust.

Question

Quizplus · Accepted Answer

A security interest is an interest in personal property or fixtures that a creditor obtains to secure payment or performance of an obligation. For example, when a person borrows money from the bank to buy a new car, the bank takes a security interest in (puts a lien on) the car until the loan is repaid.

An Interest in Fixtures That a Creditor Obtains to Secure