A security interest is enforceable only if the collateral is in the creditor's possession.

Question

Quizplus · Accepted Answer

A security interest can be enforceable even if the creditor does not possess the collateral. This can include situations such as mortgages on real estate or liens on vehicles. In such cases, the creditor's security interest is typically recorded in public records to provide notice to others of the creditor's claim to the property.

A Security Interest Is Enforceable Only If the Collateral Is