Often the title of the goods will be transferred to a creditor as security for a loan.Sometimes this involves the use of a bill of sale,but the nature of the transaction is for the loan to be repaid.In this case,the creditor retains possession of the item used as security.

Question

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In such transactions, the creditor does not typically retain possession of the item used as security; instead, the borrower retains possession while the creditor holds a security interest in the item until the loan is repaid.

Often the Title of the Goods Will Be Transferred to a Creditor