Which item at loan closing ensures security perfection is addressed?

• A. Market risk assessment
• B. Security perfection (filings)
• C. Customer satisfaction survey
• D. Post-closing inventory

Answer: (B)

Perfection of a lender’s security interest is established through filings, and at loan closing this step must be addressed. Filing the appropriate documents, such as a UCC financing statement (and any necessary fixture filings or real-property mortgages), makes the lender’s lien effective against other creditors and establishes priority in case of borrower default or bankruptcy. This is what ensures the security interest is enforceable and protected.

Other options don’t involve making the lien legally enforceable. Market risk assessment is about evaluating exposure to market factors, not securing collateral. A customer satisfaction survey focuses on service quality, not the loan’s collateral security. Post-closing inventory relates to monitoring collateral after closing, not the legal process of perfecting the security interest.