An interest in property that allows the property to be sold on default to satisfy the debt.

• A. Pledge
• B. Constructive notice
• C. Perfected security interest
• D. Security interest

Answer: (D)

A security interest is an interest in personal property or fixtures that secures payment of a debt or performance of an obligation. It gives the secured party the right to repossess or sell the collateral if the debtor defaults, with the proceeds applied to the owed amount. This broad concept is precisely what allows selling the property on default to satisfy the debt.

Pledge is a specific form of security interest where the creditor takes possession of the collateral; the general idea here is about the right to sell upon default, which is captured by the broader security interest concept. Perfection relates to making the security interest enforceable against third parties and priority, not to the basic right to sell. Constructive notice is not an interest at all—it's about informing others of a claim.