Which of the following is true regarding the relationship between investment property and secured transactions?

The relationship between investment property and secured transactions is significant in understanding how security interests are perfected and enforced under the Uniform Commercial Code (UCC). The correct answer highlights that investment property may need to be perfected for security interests.

When a secured party takes a security interest in investment property, such as stocks, bonds, or other financial assets, perfection of that interest is essential to protect the secured party's rights against third parties. This means that the secured party must take specific actions, such as filing a financing statement or having control over the investment property, to establish its interest.

The concept of perfection is vital because it determines the priority of claims against the property in situations where the debtor defaults or in bankruptcy proceedings. If the security interest in investment property is not perfected, the secured party may find their interest subordinate to the claims of other creditors.

The other options highlight misconceptions about the nature of investment property and the requirements for perfecting security interests. Investment property can include intangible assets, so it does not exclusively necessitate compliance with UCC. Moreover, tangible assets are not a requirement for investment property, as it often includes various forms of financial instruments. Lastly, investment property can indeed serve as collateral in secured transactions, contrary to the notion that it can never