The payment of Brian's debt to Chuck is guaranteed by Brian's personal property. This is
A) a reorganization.
B) a secured transaction.
C) a suretyship agreement.
D) a violation of most state laws.

Question

Quizplus · Accepted Answer

A secured transaction occurs when a borrower pledges collateral to a lender as security for a debt. Brian's personal property serves as collateral, which means it is pledged as security for his debt to Chuck. Therefore, this scenario represents a secured transaction. Reorganization and suretyship agreement are not applicable here, and the fourth option about violation of most state laws is incorrect.

The Payment of Brian's Debt to Chuck Is Guaranteed by Brian's