Which of the Following Statements Is True of Sale of Collateral

question 38

Multiple Choice

Which of the following statements is true of sale of collateral?

• A) In disposing of the collateral, the creditor must use a commercially reasonable method to produce the greatest benefit to himself and not to the debtor.
• B) The creditor must sell the collateral unless the consumer orally objects to the sale, otherwise, the creditor may keep the collateral in satisfaction of the debt.
• C) If less than 80 percent of the purchase price has been paid, the creditor may propose to the debtor that the creditor keep the collateral in satisfaction of the debt.
• D) If the creditor has a security interest in consumer goods and the debtor has paid 60 percent or more of the purchase price, the creditor must sell the repossessed collateral.

---

Definitions:

Black Suffrage

The right of African Americans to vote, a central issue in the civil rights movement, especially after the American Civil War and during Reconstruction.

Federal Government

A system of government where powers are divided between a central, national government and various regional governments.

Formerly Enslaved

Individuals who were once subject to slavery but have since been emancipated or released from bondage.

Sea Islands Experiment

An early Reconstruction initiative in the 1860s aimed at redistributing land on the Sea Islands off the coast of South Carolina to newly freed slaves.