When a creditor extends credit to a debtor, to protect itself, the creditor should:

Question

Quizplus · Accepted Answer

By taking a security interest in an asset owned by the debtor and attaching any security interest it takes, the creditor has a better chance of recouping their losses if the debtor defaults on the loan. A perfected security interest is also important, but selecting option E is incorrect because it includes the contradictory statement of making sure the security interests are not perfected.

When a Creditor Extends Credit to a Debtor, to Protect