Mean to perfect the bank interest in the collateral

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What does it mean to “perfect” the bank’s interest in the collateral? Assume that a computer consultant received a contract (solid credit worthy client) to purchase and install $100,000 of equipment for a client. They approached the bank for a short term loan to purchase the equipment for installation. Since the contract is with the consultant, payment will be made to the consultant. What risks are there for the bank? How would the bank “perfect” their interest in the collateral?

Reference no: EM131075932

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