A Security Agreement Must

question 9

Multiple Choice

A security agreement must:

• A) identify the parties involved.
• B) contain a reasonable description of the collateral.
• C) demonstrate that the parties intended for the creditor intends to have a security interest.
• D) all of the above.

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Definitions:

Interest Rate

The percentage at which interest is charged or paid on a loan or savings, typically expressed as an annual percentage rate.

Present Value

The immediate value of an upcoming amount of money or a series of cash inflows, based on a set rate of return.

Usury Law

Legislation that sets maximum interest rates that can be charged on loans to prevent exploitation and excessive interest charges.

Shortage

A market condition where the demand for a product exceeds its supply, often leading to higher prices.