Under the Code, collateral is classified according to:

A) its nature and use.
B) the fundamental rights of the secured party.
C) the fundamental rights of the debtor.
D) its value.

Collateral

An asset or property that a borrower offers to a lender as security for a loan.

Secured Party

An individual or entity that holds an interest in a secured transaction, typically a lender with a security interest in the collateral provided by a borrower.

Debtor

An individual or organization that owes money to another party, known as the creditor.