Which of the Following Statements Is True Regarding a Secured

question 42

Multiple Choice

Which of the following statements is true regarding a secured creditor's disposition of the collateral after the debtor's default?

• A)The debtor cannot redeem the collateral after his default.
• B)The collateral must be disposed of by private sale.
• C)The creditor may opt not to repossess the collateral and instead sue the debtor on his underlying obligation.
• D)If the proceeds realized from the sale of the collateral exceed the various expenses that must be satisfied from those proceeds,the surplus goes to the creditor.

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Definitions:

Tax Return

The annual document submitted to a tax authority that reports income, expenses, and other relevant tax information, used to determine tax liability.

Compensation

Payment or reward given to employees in exchange for their services or the loss suffered, including salary, wages, benefits, and other forms.

Form 1040EZ

A simplified version of the IRS income tax return form for individuals with uncomplicated financial situations, no longer in use as of the 2019 tax year.

Interest Income

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