Who is typically the debtor in a security interest scenario?

In a security interest scenario, the debtor is typically the borrower. This is because the borrower is the party that receives a loan or credit and, in return, grants a security interest in certain collateral to the lender. The purpose of this arrangement is to provide the lender with some assurance that they will be repaid. If the borrower fails to meet their obligations, the lender can take possession of the collateral identified in the security interest.

The lender, on the other hand, is the creditor who provides the funds and is therefore not considered the debtor. The lessor, generally involved in leasing transactions, provides an asset for use but does not directly engage in the borrowing of funds in the context of a security interest. Similarly, a manufacturer may supply goods but typically does not fit into the definition of a debtor in these financial agreements. Thus, the borrower, as the individual or entity obtaining the loan while pledging collateral, is the correct identification of the debtor in a security interest context.