Question - A security interest is a person's stake in personal property or fixtures that secures the performance of an obligation.
Attachment is a vital step in a secured transaction. It means that the secured party has taken the steps to create an enforceable security interest.
Please respond to all of the following prompts in the class discussion section of your online course:
Fowler Bros. has applied to Gibralter Bank for a $50,000 loan for its business expansion. Suppose Fowler Bros. plans to use its account at Gibralter Bank as collateral. Discuss what the bank needs to do for a security interest to attach.
• Identify what specific steps should be taken. What step might be overlooked by an individual unfamiliar with secured transactions?
• Why is attachment a vital step in a secured transaction?
• How should the concept of perfection be considered?
• What is the difference between perfection and attachment? How are they related in this scenario?