Certain Transactions Involving Security Interests

Certain transactions involving security interests pertain to agreements where a creditor can claim a debtor's property if they default on a loan. In the context of preferential transactions, these may involve situations where a debtor pays or favors one creditor over others shortly before filing for bankruptcy. Such preferential payments can be challenged in bankruptcy proceedings because they might give some creditors an unfair advantage, potentially undermining the equitable treatment of all creditors. The goal is to ensure fair distribution among all creditors rather than allowing select ones to be favored at the expense of others.