Question

The basic instrument in a secured transaction is the ______.

a) Certificate of sale b) Security agreement c) Writ of attachment d) Writ of execution

Answer 1

The Basic Instrument in a secured transaction is a Security Agreement.

Even though other Options are a security level documents too but at the basic level we always look for a security / collateral when we execute a transaction for which money has not exchanged hands. A Writ of attachement and a Writ of Execution are enforced by the court which is a later case scenario and generally happenes if there is a dispute.

However at a basic level a person looks for a Security Agreement which acts as a security interest against an asset which has been kept as collateral. It also contains the details regarding payment schedule and action in case of default.

So Answer : b) Security Agreement