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

Question

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An enforceable security interest in collateral, such as the SUV in this case, can be created by either a written agreement or by Best's possession of the SUV. However, either requirement alone is not enough for an enforceable security interest. Therefore, choice B, which includes both options, is the best choice.

Best Credit Corporation Lends Funds to Cody, a Consumer, to Apply