Examlex
Which of the following is TRUE?
Unsecured Creditors
Creditors who have extended credit without the protection of collateral, making their claims on a debtor’s assets secondary to those of secured creditors.
Collateral
Property or assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.
Security Interest
A legal claim or lien on collateral that has been pledged, usually to secure repayment of a debt.
Financing Statement
A document filed by a creditor to indicate a security interest in the assets of a debtor, typically used in secured transactions.
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