Does The Private Security Agreement Give Legal and Equitable Title To The Interest
Security interest is a legal claim (i.e. legal title) on collateral that has been pledged, usually to obtain a loan. This gives a creditor the right to repossession (i.e. equitable title) should the loan ever be called due. This security interest can be perfected any time after it is attached. For example, a creditor could elect to perfect its interest when the debtor misses their first payment. Further, if the creditor wishes to keep possession of the collateralized assets during the life of the loan they may write this into the contract itself; however, the collateral must be replaced in cases where the loan is settled.