Asked by Spanky Dixon on Jul 09, 2024
Verified
The Uniform Commercial Code does not define loan default.
Loan Default
The failure to meet the legal obligations or conditions of a loan agreement, typically by not making the required payments on time.
Uniform Commercial Code
A comprehensive set of laws governing commercial transactions in the United States, designed to harmonize the law of sales and other commercial transactions across states.
- Gain insight into the rationale and significance of secured transactions under the Uniform Commercial Code (UCC).
Verified Answer
CT
Consuelo TaverasJul 12, 2024
Final Answer :
True
Explanation :
Generally,when a debtor fails to make payments on a loan or declares bankruptcy,the debtor has defaulted on the loan.However,the Uniform Commercial Code does not define default.Consequently,each security agreement provides a specific definition of what is considered a default.Moreover,each agreement determines the procedures and consequences that occur in the event of default.Because the creditor is usually in a better bargaining position,the creditor usually determines the definition of default.
Learning Objectives
- Gain insight into the rationale and significance of secured transactions under the Uniform Commercial Code (UCC).
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