When a Debtor Defaults, a Secured Creditor Can Relinquish the Security

question 36

True/False

When a debtor defaults, a secured creditor can relinquish the security interest but cannot then seek a judgment on the underlying debt.

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Model Laws

Statutes recommended by organizations, such as the Uniform Law Commission, for adoption by all jurisdictions to encourage consistent legal standards across states or countries.

Commercial Transactions

Activities or deals involving the exchange of goods or services between businesses or individuals for the purpose of commerce.

Promissory Estoppel

Promissory estoppel is a legal principle that prevents a party from withdrawing a promise made to another when the latter has reasonably relied on that promise to their detriment.

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