Trevor goes to the AutoShop and purchases a new truck on credit for his business.He signs an agreement with AutoShop under which the truck is the collateral for AutoShop's loan to him.Trevor then goes to First Bank and signs an agreement for a loan so that he can buy supplies for his business.Do either of these agreements involve a purchase-money security interest?

Question

Quizplus · Accepted Answer

A)A purchase-money security interest is created when a debtor uses money
borrowed from the secured party to purchase the collateral.
B)A purchase-money security interest is created when a debtor uses money borrowed from the secured party to purchase the collateral.
C)A purchase-money security interest is created when a debtor uses money borrowed from the secured party to purchase the collateral.
D)A purchase-money security interest is created when a debtor uses money borrowed from the secured party to purchase the collateral.
E)A purchase-money security interest is created when a debtor uses money borrowed from the secured party to purchase the collateral.

Trevor Goes to the AutoShop and Purchases a New Truck