When Evaluating Credit, a Customer Who Could Sell Assets to Pay

question 68

Multiple Choice

When evaluating credit, a customer who could sell assets to pay off a loan is said to have

• A) collateral.
• B) creditworthiness.
• C) character.
• D) capacity.

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Definitions:

Contractual Rights

Rights that arise out of agreements between parties, granting specific entitlements or obligations as delineated in the contract.

Express Provision

An express provision is a clause or term in a contract or legal document that is explicitly stated, leaving no room for misunderstanding or interpretation.

Personal Nature

Characteristics or activities that belong to or are intended for a specific individual, often relating to private or intimate aspects of life.

Donee Beneficiary

In contract law, a person who benefits from a contract made between two other parties, where the intention is to gift the benefit or performance.