Which of the Following Statements About a Creditor's Right to Repossess

question 5

Multiple Choice

Which of the following statements about a creditor's right to repossess collateral is false?

• A)The Code authorizes a creditor to repossess collateral when the debtor defaults.
• B)The creditor can obtain the collateral through self-help if she can obtain possession peacefully.
• C)If the collateral cannot be obtained without disturbing the peace,the creditor must go through the courts to repossess the collateral.
• D)If the collateral is intangible,the secured party can get payments made to her,even if performance has not been rendered to the debtor.

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Definitions:

AMEX

The American Stock Exchange, a stock exchange in the United States where stocks and options are traded.

Market Order

A buy or sell order to be executed immediately at current market prices.

Limit-Sell Order

A stock market order to sell a security when it reaches a certain price, used to lock in profits or limit losses.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, to keep the account open.