A(n) ______security interest is effective against third persons as well as against the buyer.
A) universal.
B) prohibitive.
C) perfected.
D) protective.

Question

Quizplus · Accepted Answer

A perfected security interest is one that has been properly filed or recorded according to applicable state law. This type of security interest is effective not only against the buyer but also against third parties, such as other creditors, who may have an interest in the same collateral. A universal security interest is one that covers all of a borrower's assets, but this term is not commonly used in the context of security interests. A prohibitive security interest and a protective security interest are not recognized legal terms.

A(n) ______Security Interest Is Effective Against Third Persons as Well