Which of the following is true regarding what may constitute collateral?
A) Goods, indispensable paper, intangibles, and proceeds may all constitute collateral.
B) Goods, indispensable paper, and intangibles may constitute collateral, but proceeds may not.
C) Goods may constitute collateral, but indispensable paper, intangibles, and proceeds may not.
D) Goods and proceeds may constitute collateral, but indispensable paper and intangibles may not.
E) Goods and intangibles may constitute collateral, but indispensable paper and proceeds may not.

Question

Quizplus · Accepted Answer

Collateral can include a wide range of assets such as goods, indispensable papers (like negotiable instruments or documents of title), intangibles (like patents or copyrights), and proceeds derived from the sale or lease of these assets. This broad definition allows for various types of property to secure an obligation.

Which of the Following Is True Regarding What May Constitute