Asked by Langle Eunice on Jul 09, 2024
Verified
________ property is the proper designation for any equipment subject to the bank's security interest that Morgan obtains after the initial loan agreement.
A) After-acquired
B) Post-dated
C) Cover
D) Post-security
E) Valid
After-Acquired Property
Property not owned by a debtor at the time of a security agreement but acquired later and subsequently becomes subject to the security interest.
Security Interest
A security interest is a legal right granted by a debtor to a creditor over the debtor's property, ensuring the property may be used as collateral for the repayment of a debt.
- Determine the components that make up collateral and classify items in the sphere of secured transactions.
- Ascertain the essential steps for a secured party to perfect a security interest and comprehend the distinctions among methods of perfection, including those that are automatic.
Verified Answer
ZK
Zybrea KnightJul 15, 2024
Final Answer :
A
Explanation :
The term "after-acquired" property refers to assets that a borrower acquires after the initial loan agreement but which are subject to the lender's security interest according to the terms of that agreement. In this scenario, the bank had an interest in any property Morgan acquired after the security interest was made, making it after-acquired property.
Learning Objectives
- Determine the components that make up collateral and classify items in the sphere of secured transactions.
- Ascertain the essential steps for a secured party to perfect a security interest and comprehend the distinctions among methods of perfection, including those that are automatic.
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