Asked by Noemi Villalobos on Jul 27, 2024
Verified
Which of the following is false regarding a creditor's rights to collateral upon a debtor's default?
A) If a debtor defaults on a loan, the secured party can take possession of the collateral so long as the secured party does not breach the peace.
B) Under the UCC, the secured party can sell, lease, or transfer the collateral in any commercially reasonable method.
C) Regardless of where the collateral is sold, the secured party must strive to receive the best price for the collateral.
D) Instead of disposing of the collateral, the secured party may choose to keep the collateral in full or partial satisfaction of the debt.
E) A debtor in default has no rights in regard to whether collateral is retained by the secured party or sold.
Collateral
An asset that a borrower offers to a lender as security for a loan, which may be forfeited in case of default.
Debtor Default
A situation in which a debtor fails to meet the legal obligation of debt repayment, possibly leading to legal action by the creditor.
Secured Party
An individual or entity that holds an interest, typically a security interest, in the debtor's collateral to secure payment or performance of an obligation.
- Analyze debtor rights upon default and the secured party's rights and responsibilities regarding collateral.
Verified Answer
Learning Objectives
- Analyze debtor rights upon default and the secured party's rights and responsibilities regarding collateral.
Related questions
Which of the Following Is True Regarding the Manner in ...
Which of the Following Is True Regarding the Court's Opinion ...
What Is the Time Period in Which a Debtor Has ...
A Secured Creditor Repossesses the Collateral from the Debtor and ...
Bonn,a Secured Party,intends to Sell Collateral at a Private Sale ...