To create a legally valid security interest, a business must ensure that the interest is:

Question

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To create a legally valid security interest, the interest must be perfected, meaning that the creditor has taken all necessary steps to give notice of their interest in the collateral. This ensures that the creditor has priority over any other parties who claim an interest in the collateral. Debated, united, detached, and exposed do not have any relevance to the creation of a legally valid security interest.

To Create a Legally Valid Security Interest, a Business Must