Asked by nadezhda kurilov on Jun 08, 2024
Verified
Which of the following is the oldest and also the simplest security device?
A) Pledge
B) Chattel mortgage
C) Deed of trust
D) Surety
Chattel Mortgage
A loan agreement where personal movable property is used as collateral for the loan, and the borrower retains possession of the property while repaying the loan.
Pledge
A commitment or security interest, especially in the context of a pledge of assets as collateral for a loan.
Deed of Trust
A legal document used in some states that involves a trustor, a trustee, and a lender (beneficiary), outlining the terms of a real estate transaction and placing the property as security for a loan.
- Determine the categories and attributes of security devices used in agreements.
Verified Answer
AA
Amanowil AbadirJun 10, 2024
Final Answer :
A
Explanation :
The oldest and simplest security device was the pledge.In order to have a pledge valid against third persons with an interest in the goods,such as subsequent purchasers or creditors,it was necessary that the property used as security be delivered to the pledgee or a pledge holder.
Learning Objectives
- Determine the categories and attributes of security devices used in agreements.