§ 2884 Contract Performance Security Lien

• •You can make a deal where someone gets a right to your stuff if you don’t do what you promised later.
• •This deal can start right away, even if you haven’t done anything wrong yet.
• •It’s like saying, 'If I don’t pay you back later, you can take my car.'

You borrow money from a friend to start a business.

You agree that if you don’t pay them back in a year, they can take your computer as payment. The deal starts now, even though you haven’t missed any payments yet.