What are the responsibilities of legal counsel in relation to security registration?

Legal counsel plays a critical role in the security registration process, primarily by ensuring that the security is properly registered. This involves reviewing and preparing the necessary legal documents, providing guidance on compliance with applicable laws and regulations, and confirming that all required filings are completed correctly. By overseeing these details, legal counsel helps protect the interests of the lender by establishing their rights in the event of a default.

Additionally, legal counsel is responsible for advising the borrower about the lender's rights in the case of default. This includes clarifying the implications of the secured loan agreements, the obligations of the borrower, and the recourse available to the lender if the borrower fails to meet those obligations.

As a result, the responsibilities of legal counsel encompass both ensuring proper registration of the security and providing crucial advice on the lender's rights. Therefore, recognizing both aspects confirms why the answer indicating that both options are correct is accurate.