What Is Your Potential Liability from the Deficiency Payments Clause

question 109

Multiple Choice

What is your potential liability from the deficiency payments clause if you default?

• A)Nothing,since the loan is in default it invalidates all loan clauses.
• B)You will have to pay any legal or repossession fees incurred by the lender.
• C)You will have to pay the remainder of the loan balance if the proceeds from the repossession are not sufficient to pay off the loan.
• D)Both B and C are correct.

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Definitions:

Periphery

The outer limits or edge of an area or object, often referring to areas situated away from a central point.

Sensitivity

The ability to detect or respond to slight changes, signals, or influences.

Rods

Photoreceptor cells in the retina of the eye that are sensitive to low light levels, enabling night vision.

Periphery

The outer limits or edge of an area or object, often used metaphorically to describe areas that are marginal or less central.