Best Credit Corporation lends funds to Cathy,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

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An enforceable security interest can be created either by a written agreement or by the creditor's possession of the collateral. In this case, since the SUV is the collateral for the loan, Best Credit Corporation can create a security interest either by having a written agreement with Cathy or by taking possession of the SUV. Having both the written agreement and possession of the SUV would provide additional protection for Best Credit Corporation, but it is not strictly necessary to have both.

Best Credit Corporation Lends Funds to Cathy,a Consumer,to Apply to the Cost