When a buyer obtains a loan from a bank to pay a seller, the transaction is known as a(n) ________.

Question

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A three-party secured transaction involves a borrower (buyer), a lender (bank), and a seller. In this type of transaction, the bank provides the loan to the buyer to pay for the purchase from the seller. The loan is secured by a security interest in the property being purchased, which serves as collateral for the loan. The seller is paid for the property, and the buyer assumes responsibility for repaying the loan to the bank.

When a Buyer Obtains a Loan from a Bank to Pay