CREDIT TRANSACTIONS ARE REALLY CONTRACTS OF SECURITY. THEY ARE TWO TYPES:
1. SECURED TRANSACTIONS OR CONTRACTS OF REAL SECURITY—Those supported by a collateral or an encumbrance of property
2. UNSECURED TRANSACTIONS OR CONTRACTS OF PERSONAL SECURITY—those the fulfillment of which by the principal debtor is secured or supported only by a promise to pay or the personal commitment of another such as a guarantor or surety
