Laser Loan Company has a security interest in collateral owned by Magma Tool & Die Company.A security interest in collateral
A)eliminates the need for a financing statement.
B)is enforceable when attachment occurs.
C)is lost when attachment occurs.
D)must be obtained by possession.

Question

Quizplus · Accepted Answer

A security interest in collateral is enforceable when attachment occurs. This means that the creditor has a right to take possession of the collateral in case the debt is not repaid. This interest can be secured through a financing statement filed with the state or through possession of the collateral.

Laser Loan Company Has a Security Interest in Collateral Owned