Asked by Harish Ravalla on May 27, 2024
Verified
Which of the following is true regarding the Uniform Commercial Code's definition of default?
A) The Uniform Commercial Code defines default as the failure to make any payment when it is due.
B) The Uniform Commercial Code defines default as the failure to make a payment within 30 days after the payment is due.
C) The Uniform Commercial Code defines default as the failure to make a payment within 60 days after the payment is due.
D) The Uniform Commercial Code defines default as the failure to make a payment within 90 days after the payment is due.
E) The Uniform Commercial Code does not define default.
Uniform Commercial Code
A comprehensive set of laws governing all commercial transactions in the United States, intended to standardize and simplify the law across the country.
Default
A failure to fulfill a legal obligation or agreement, such as not making a scheduled loan payment on time.
- Familiarize yourself with the ramifications of bankruptcy for both secured and unsecured creditors, and how it affects the debtor's estate.
Verified Answer
ST
Sanju ThakurJun 02, 2024
Final Answer :
E
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 constitutes default.
Learning Objectives
- Familiarize yourself with the ramifications of bankruptcy for both secured and unsecured creditors, and how it affects the debtor's estate.
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