Who is defined as a debtor in secured transactions?

In secured transactions, the debtor is defined as the person who owes payment or performance of an obligation that is secured by a security interest. This is pivotal because the concept of a debtor is central to establishing the relationship between the parties involved in a secured transaction. The debtor receives value based on the agreement to repay or perform an obligation, and their property may be subject to a security interest, which provides assurance to the creditor that they will be paid.

The correct choice highlights the debtor's role in the obligation or payment, differentiating them from other parties involved, such as creditors or those providing security interests. This understanding reinforces the mechanics of secured transactions, which often involve the use of collateral to secure repayment obligations. Recognizing who qualifies as a debtor helps to clarify the rights and responsibilities within the transaction framework, ensuring that both parties navigate their agreements with a clear understanding of their positions.