Perfection of a Security Interest Marsh has a prize horsenamed Arabian Knight. Marsh is in need of workingcapital.

Perfection of a Security InterestMarsh has a prize horsenamed Arabian Knight. Marsh is in need of workingcapital. She borrows $50,000 from Mendez, who takespossession of Arabian Knight as security for the loan.No written agreement is signed. Discuss whether, in theabsence of a written agreement, Mendez has a Mendez has a security interest in Arabian Knight. If Mendez does have a secu-rity interest, is it a perfected security interest?