Which of the Following Is False Regarding a Creditor's Rights

question 20

Multiple Choice

Which of the following is false regarding a creditor's rights to collateral upon a debtor's default?

• A)If a debtor defaults on a loan,the secured party can take possession of the collateral so long as the secured party does not breach the peace.
• B)Under the UCC,the secured party can sell,lease,or transfer the collateral in any commercially reasonable method.
• C)Instead of disposing of the collateral,the secured party may choose to keep the collateral in full or partial satisfaction of the debt.
• D)Regardless of where the collateral is sold,the secured party must strive to receive the best price for the collateral.
• E)A debtor in default has no rights in regard to whether collateral is retained by the secured party or sold.

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Definitions:

Extraversion

A characteristic of an individual that includes being outgoing, conversational, bold, and demonstrating a significant amount of emotional openness.

Realization

The act of becoming fully aware of something as a fact or understanding a concept completely.

Open to Experience

A personality trait describing individuals who are imaginative, curious, and open-minded toward new experiences.

Neurotic

A characteristic of personality marked by fluctuations in emotion, anxiousness, shifts in mood, concerns, and apprehension.