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:

Separately Reported

Financial items or activities that are shown distinctly in financial statements to provide clarity and understanding of a company's financial position.

Outstanding Checks

Checks that have been issued and recorded in the account holder's register, but have not yet been cashed or cleared by the bank.

Customers

Individuals or businesses that purchase goods or services from another business.

Promptly

Quickly or without delay, often used in the context of responding to communications or fulfilling obligations.