For a creditor to have an enforceable security interest, the creditor must give something of value to the debtor.

Question

Quizplus · Accepted Answer

This statement is true. In order to have an enforceable security interest, a creditor must provide something of value to the debtor as collateral for the debt. This is often in the form of tangible property, such as a car or home, or intangible property, such as intellectual property or accounts receivable. Without providing something of value as collateral, the creditor would not have the legal right to repossess or sell the property if the debtor defaults on the loan.

For a Creditor to Have an Enforceable Security Interest, the Creditor