What Is the Loan Clause Stating That If You Default

question 47

Multiple Choice

What is the loan clause stating that if you default on a secured loan,the lender can repossess whatever is secured,as well as bill you for the difference if that repossession does not cover what you owe?

• A)Insurance clause
• B)Default clause
• C)Recourse clause
• D)Deficiency payments clause
• E)None of the above

---

Definitions:

Selling Price

The amount for which a product or service is sold to the customer.

Unit Cost

The expenditure involved in generating, keeping, or obtaining one unit of a product or service.

Overhead

An ongoing expense of operating a business, such as rent, utilities, and salaries.

Break-even Price

The price level at which the revenues for a product or service equal the costs, resulting in neither profit nor loss.