An Automobile Is a Personal Use Asset for Most Buyers

question 50

True/False

An automobile is a personal use asset for most buyers.

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Definitions:

Purchase-Money Security Interest

A legal claim that allows a creditor priority in reclamation over the bought property if the debtor defaults on a loan used to purchase the property.

Security Interest

A legal claim or right granted on an asset as a security for the performance of an obligation, such as the repayment of a loan.

Perfected Interest

A legal claim or lien that has been formally acknowledged or registered, typically securing priority over others in the same asset or property.

Purchase-Money Security Interest

A legal claim or lien on an item of property that secures payment of the debt used to purchase the property.