What type of obligations can be secured in a security agreement?

In a security agreement, it is possible to secure not only current obligations but also future obligations, making the option that includes "future obligations including all indebtedness" the most accurate choice. A security agreement can extend to present and future indebtedness, allowing a lender to secure obligations that may arise after the agreement is executed. This flexibility is critical for lenders as it means they can secure credit lines or revolving loans that may accrue as the borrower incurs further debt.

In typical practice, lenders will include language that reflects their intent to cover ongoing and future financial responsibilities, which may stem from a variety of transactions or loans. This creates a broader security interest that protects the lender against potential defaults on future debts, thus ensuring that their interests are safeguarded even as the borrower’s financial situation evolves.

The other options do not align with the commonly accepted principles of secured transactions. For instance, restricting security interests only to current obligations would limit the scope of the agreement unnecessarily, while suggesting that future obligations can only be secured with creditor approval overlooks the inherent flexibility granted in a security agreement. Lastly, focusing solely on obligations that have already been incurred disregards the preventative nature of security interests, which are designed to manage risk associated with future potential debts.