Juan gives his class ring to Maren to use as collateral for a loan she made to him. This collateral is said to be perfected by possession.

Name: Juan gives his class ring to Maren to use as collateral for a loan she made to him. This collateral is said to be perfected by possession.
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Question

Quizplus · Accepted Answer

Perfection by possession occurs when the secured party (lender) takes physical possession of the collateral, in this case, Juan's class ring, to secure the loan made to him.

Juan Gives His Class Ring to Maren to Use as Collateral