Wyatt Wishes to Buy a New Combine for His Farm

Multiple Choice

Wyatt wishes to buy a new combine for his farm to harvest the wheat. The cost of the new combine is about $500,000.00 for which he must secure a loan to purchase. The bank that is willing to loan him the amount requires Wyatt to put up collateral to ensure that if he is unable to repay that loan that the bank will be able to seize the asset to repay the loan. This situation is called

A) A promissory note
B) A secured transaction
C) A fiduciary transaction
D) A collateral loan