What does a security interest secure?

A security interest is a legal claim or lien on collateral that has been pledged, typically to secure a loan or a financial obligation. The essence of a security interest is to provide the lender with a form of assurance that if the borrower defaults, the lender will have a right to take possession of the collateral to satisfy the debt.

This means that the primary purpose of a security interest is to secure the payment of an obligation. It ensures that there is a specific asset that can be claimed in case the borrower fails to meet their financial responsibilities.

In contrast, ownership of property refers to the title or rights in a property, which a security interest does not confer; it merely attaches to the property as collateral for an obligation. Legal representation does not relate to security interests at all, as it pertains to having legal counsel or an attorney representing an individual or business. Property rights, while they encompass ownership and the legal interests in property, do not specifically focus on the aspect of securing payment of debts.

Thus, the correct answer highlights the core function of a security interest in facilitating the fulfillment of a financial obligation.