When the creditor becomes a secured party with an interest in the collateral,________ occurs.

A) attachment
B) subrogation
C) accord and satisfaction
D) novation
E) perfection

Attachment

The point at which a creditor becomes the secured party that has a security interest in the collateral.

Secured Party

A lender or creditor who has an interest, typically a lien, in the collateral offered by the debtor in a secured transaction.

Collateral

Assets that a borrower offers to a lender to secure a loan, which the lender may seize in the event of loan default.