Which of the Following Is False Regarding a Creditor's Rights

question 54

Multiple Choice

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.

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