The transfer of collateral to a secured party for the purpose of perfection is called a(n)________.
A)sole-benefit bailment
B)pledge
C)entrustment
D)allonge
E)allocation

Question

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Sometimes a debtor gives a creditor the collateral to hold until the loan is paid off.The transfer of collateral to the secured party for the purpose of perfection is called a pledge.

The Transfer of Collateral to a Secured Party for the Purpose