Business ENewsletter December 02 2010

Lending and Secured Transactions
Consumers and businesses routinely call on banks to lend them funds with which to purchase real estate, automobiles, equipment and other assets. Banks are typically happy to lend the funds so long as they believe they are adequately protected in the event of default. This protection is achieved through the execution of a promissory note in favor of the bank and, in many instances, the borrower's granting the bank a security interest in an asset or assets owned by the borrower.