If the Value of the Collateral Is Less Than the Debt

question 17

Multiple Choice

If the value of the collateral is less than the debt owed to the secured party,then:

• A) the secured party is still secured for the entire debt owed him
• B) the secured party is unsecured for the excess of debt over the value of the security
• C) the secured party loses the excess of debt over the value of the security
• D) the secured party gets to take some other property as collateral so his entire debt is secured
• E) the secured party is unsecured for the entire debt

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Definitions:

Minimum-wage Laws

Regulations established by government mandating the lowest hourly rate that can be paid to an employee by employers.

Micro-management

An excessive control or attention on minor details, often in a managerial context, limiting the autonomy of employees.