Kirk purchases a sailboat on credit from Lakefront Sales, and Lakefront keeps a security interest in the boat. Lakefront then assigns the security interest to First Finance Co Explain what having a security interest means. Under the UCC, what defenses can Kirk assert against First Finance?

A security interest is a legal right in personal property that assures payment. Lakefront has a right to take the sailboat back if Kirk fails to make his payments. First Finance, the assignee of the security interest, generally has all the rights Lakefront Sales had. Under UCC Section 9-404, Kirk may generally assert any defense against First Finance that arose from the contract, such as refusal to continue making payments because the boat has a defective hull. Also, Kirk may generally assert any defense that arose before notice of assignment; for example, if Lakefront Sales committed fraud in the sale of the boat.