The concept of perfection: ______.:
A) creates a security interest.
B) protects against the claims of others to the collateral.
C) secures the rights of the creditor against the debtor.
D) Converts unsecured creditors into secured creditors.

Question

Quizplus · Accepted Answer

Perfection in the context of secured transactions refers to the legal process by which a secured party protects its interest in the collateral against claims made by third parties. It does not create a security interest (that's established by attachment), nor does it directly secure rights against the debtor or convert unsecured creditors into secured creditors.

The Concept of Perfection: ______