To Pay Tuition at City College, Dora Borrows Funds from Equity

To pay tuition at City College, Dora borrows funds from Equity Credit and gives as security a note on which Dora is the payee. Equity Credit's loan officer agrees to hold the note as collateral. The lender does not file a financing statement. Equity Credit's security interest is perfected because

A) the lender possesses the note.
B) default on a student loan is not a credible option.
C) the collateral is intangible.
D) Dora's other creditors are not aware that Equity Credit holds the note.

Correct Answer:

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Access For Free