The purpose of a secured transaction is to provide the creditor a security interest in personal property that will give that holder a right against the property rather than be a general creditor if the obligation owed is not paid.

Question

The purpose of a secured transaction is to provide the creditor a security interest in personal property that will give that holder a right against the property rather than be a general creditor if the obligation owed is not paid.​

Quizplus · Accepted Answer

A secured transaction allows a creditor to have a security interest in the debtor's personal property, ensuring that if the debtor fails to pay the obligation, the creditor has a right to the property as collateral, rather than just being an unsecured creditor with no specific claim to the debtor's assets.

The Purpose of a Secured Transaction Is to Provide the Creditor