Asked by Jasmine Sarmientos on May 27, 2024
Verified
When the creditor becomes a secured party with an interest in the collateral,________ occurs.
A) attachment
B) subrogation
C) accord and satisfaction
D) novation
E) perfection
Attachment
The point at which a creditor becomes the secured party that has a security interest in the collateral.
Secured Party
A lender or creditor who has an interest, typically a lien, in the collateral offered by the debtor in a secured transaction.
Collateral
Assets that a borrower offers to a lender to secure a loan, which the lender may seize in the event of loan default.
- Distinguish between attachment and perfection of a security interest.
Verified Answer
Learning Objectives
- Distinguish between attachment and perfection of a security interest.
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