The transfer of collateral to a secured party for the purpose of perfection is called a(n) ________.

A) sole-benefit bailment
B) pledge
C) entrustment
D) allonge
E) allocation

Perfection

The process or action of making something completely free from faults or as close to it as possible.

Secured Party

An individual or institution that holds an interest in a secured asset or collateral to secure repayment of a loan or other credit extension.

Collateral

Assets pledged by a borrower to secure a loan or other credit, and subject to seizure on default.