Which of the Following Is True of Disposition of Collateral

question 77

Multiple Choice

Which of the following is true of disposition of collateral?

• A) Disposition of collateral must be a public proceeding.
• B) The debtor is entitled to receive any surplus collateral that remains after disposition.
• C) The debtor need not be notified of the disposition as the creditor has complete claim on the collateral.
• D) Disposition of collateral occurs when the default is by the creditor.

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Definitions:

Credit Memo

A document issued by a seller to a buyer, reducing the amount that the buyer owes under the terms of an earlier invoice.

Adjusted Cash Balance

The cash balance of a company after adjusting for outstanding checks and deposits in transit, giving a more accurate representation of available funds.

Notes Receivable

A financial asset representing a promise to pay a specific amount of money, plus interest, to the holder of the note at a future date.

NSF Check

Non-Sufficient Funds Check; a check that cannot be processed because the account on which it is drawn does not have enough funds.