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Questions and Answers
What is the option for a secured party if a debtor defaults on a loan?
What is the option for a secured party if a debtor defaults on a loan?
- Disposition of collateral
- Taking possession of collateral (correct)
- Proceeding to judgment
- Retention of collateral
What is the condition for the disposition of collateral?
What is the condition for the disposition of collateral?
- The debtor must be notified within 10 days
- The collateral must be sold within 20 days
- The disposition must be commercially reasonable (correct)
- The creditor must retain the collateral
What happens if the creditor chooses to retain the collateral?
What happens if the creditor chooses to retain the collateral?
- The debtor is notified and has 10 days to object
- The collateral is sold at an auction
- The debtor is notified and has 20 days to object (correct)
- The creditor sues the debtor for the remaining amount
What is the consequence if the debtor breaches the peace?
What is the consequence if the debtor breaches the peace?
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What is the alternative to dealing with collateral?
What is the alternative to dealing with collateral?
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