Refer to Fact Pattern 12-1. Suppose that Gena pledges her 1/2 acre piece of property to secure her loan with First Fidelity. After Gena defaults on her loan, First Fidelity may obtain:

Question

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When Gena pledges her property to secure her loan with First Fidelity, it creates a security interest. If Gena defaults on her loan, First Fidelity can then obtain a judgment lien on the property through a court order, allowing them to take possession of and sell the property to recover the amount owed. Mechanic's lien applies to contractors who have worked on the property and possessory liens (C) are typically used for personal property. Default (D) and executory liens (E) are not standard legal terms.