Wombart Manufacturing sells a machine on credit to Cryslie Printing Co.Wombart insists on a security interest in the machine to:

Question

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By obtaining a security interest in the machine, Wombart Manufacturing gives itself a legal interest in the machine, and also establishes a priority claim in the machine ahead of other creditors of Cryslie. This means that if Cryslie defaults on the loan, Wombart will have the right to repossess the machine and sell it to recover the debt owed, with priority over other creditors who may also have claims to Cryslie's assets.

Wombart Manufacturing Sells a Machine on Credit to Cryslie Printing