A business purchases an airplane from an airplane manufacturer.The business obtains a loan to purchase the airplane from a bank, which obtains a security interest in the airplane.The airplane manufacturer is paid for the airplane from of the proceeds of the loan.This is a ________ transaction.
A)two-party secured
B)three-party secured
C)perfected
D)attached

Question

Quizplus · Accepted Answer

This is a three-party secured transaction because it involves the business (buyer), the bank (lender), and the airplane manufacturer (seller). The bank obtains a security interest in the airplane as collateral for the loan, which is a form of securing the transaction.

A Business Purchases an Airplane from an Airplane Manufacturer