A creditor who loans money to enable a consumer to buy goods can obtain perfection of a security interest by attaching the security interest to the goods.

Question

Quizplus · Accepted Answer

This statement is true. Under Article 9 of the Uniform Commercial Code (UCC), a security interest in goods can be perfected by attaching the security interest to the goods. Attachment requires three elements: (1) a security agreement between the creditor and debtor, (2) the creditor to give value to the debtor, and (3) the debtor to have rights in the collateral. Once these requirements are met, the creditor can perfect the security interest by either filing a financing statement with the relevant state agency or taking possession of the collateral.

A Creditor Who Loans Money to Enable a Consumer to Buy