Which of the following is true?A) A security agreement may create or provide for a security interest in property that the debtor presently does not own or have rights to.B) Obligations covered by a security agreement may not include future advances.C) Federal regulation allows a credit seller or lender to obtain a nonpossessory security interest in a consumer's household goods, such as furniture, appliances, and clothing, whether as a purchase money security interest or otherwise.D) Encryption of a record cannot serve as a debtor's authentication of a security agreement.

Question

Which of the following is true?A)  A security agreement may create or provide for a security interest in property that the debtor presently does not own or have rights to.B)  Obligations covered by a security agreement may not include future advances.C)  Federal regulation allows a credit seller or lender to obtain a nonpossessory security interest in a consumer's household goods, such as furniture, appliances, and clothing, whether as a purchase money security interest or otherwise.D)  Encryption of a record cannot serve as a debtor's authentication of a security agreement.

Brian Zheng · Accepted Answer

Final Answer : A, Explanation :  A security agreement can indeed create or provide for a security interest in after-acquired property, meaning property that the debtor does not currently own or have rights to at the time the agreement is made. This allows creditors to secure interests in assets that the debtor may acquire in the future.

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