Under the Code,collateral is classified according to:
A)its nature and use.
B)the fundamental rights of the secured party.
C)the fundamental rights of the debtor.
D)None of the above.

Question

Quizplus · Accepted Answer

The Code classifies collateral based on its nature and use, such as consumer goods, equipment, inventory, and real property. This classification helps determine the priority of claims in case of default or bankruptcy. The Code also provides rules for securing and releasing collateral, as well as protecting the rights of both the secured party and the debtor. The fundamental rights of both parties are considered, but they are not the primary basis for classifying collateral.

Under the Code,collateral Is Classified According To