Question

Quotient Financial Corporation is a secured party with a security interest in property owned by Retail Sales Company. Perfection of this security interest may not protect Quotient Financial against the claim of____________.

Answer 1

Quotient Financial Corporation is a secured party with a security interest in property owned by Retail Sales Company. Perfection of this security interest may not protect Quotient Financial against the claim of  a trustee in bankruptcy.

Explanation:

A security interest on a loan refers to a  legal claim on collateral provided by the borrower ,it allows the lender to repossess the collateral and sell it if the loan goes default

A security interest reduces  the risk for a lender, allowing it to charge lower interest on the loan. Lower interest means that the borrower’s cost of capital will also be reduced.

Quotient Financial Corporation is a secured party with a security interest in property owned by Retail Sales Company. Perfection of this security interest may not protect Quotient Financial against the claim of a trustee in bankruptcy.