Ready Credit Inc. holds a security interest in inventory owned by Soy Products Inc. Ready Credit can protect its claim to the inventory in the event of Soy Products' default by
A)assignment.
B)perfection.
C)redemption.
D)retention.

Question

Quizplus · Accepted Answer

Perfection of a security interest is the legal process by which a secured party protects its right in the collateral against third parties, typically by filing a financing statement or taking possession of the collateral. This ensures that the secured party has a legally recognized claim to the collateral in the event of the debtor's default.