Summit Credit Corporation lends funds to Toby,a consumer,to apply to the cost of a sport utility vehicle (SUV),which is the collateral for the loan.An enforceable security interest also requires

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According to the Uniform Commercial Code (UCC), a security interest can be enforceable either by a written agreement or possession of the collateral by the lender. Therefore, either a written agreement or Summit's possession of the SUV would satisfy the requirement for an enforceable security interest. The vehicle seller's acknowledgement or Toby's possession of the SUV alone do not establish a security interest.

Summit Credit Corporation Lends Funds to Toby,a Consumer,to Apply to the Cost