Asked by Michelle Kuruc on Jun 22, 2024
Verified
A security interest may not apply to personal property that is not yet in the debtor's possession.
Personal Property
Any form of property that is movable and not fixed permanently to one location, as opposed to real property or real estate.
Debtor's Possession
Refers to a situation in bankruptcy proceedings where the debtor retains possession and control of its assets while undergoing reorganization.
Security Interest
A legal claim or lien on collateral that has been offered to secure a loan, which grants the lender a right to repossession if the borrower defaults.
- Describe the conditions under which a security interest may apply, including prior to the debtor's possession of the collateral.
Verified Answer
Learning Objectives
- Describe the conditions under which a security interest may apply, including prior to the debtor's possession of the collateral.
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