An interest in personal property or fixtures that secures payment or performance of an obligation is called a:

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A security interest is a legal claim on collateral that enables a lender to repossess and sell the collateral if the borrower defaults on the loan or fails to meet other obligations. The lender holds the security interest in personal property or fixtures that secure payment or performance of the obligation. This is a common arrangement in secured loans, such as car loans or mortgages. The other options are not accurate definitions of this type of interest.

An Interest in Personal Property or Fixtures That Secures Payment