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Figure 1.4
Using the figure above, answer the following questions.
-What is the directional term for Label D?
Security Interest
A legal claim or lien on collateral, ensuring that a debt or obligation is secured with specific property.
Creditor
An individual or institution that lends money or extends credit to another entity, which is obliged to pay back the loan.
Pledge
The transfer of collateral to a secured party.
Collateral
Assets pledged by a borrower to secure a loan or credit, which the lender can seize if the borrower defaults on the repayment.
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