After a Debtor's Default, If the Proceeds from the Disposition

question 14

True/False

After a debtor's default, if the proceeds from the disposition of collateral are not sufficient to satisfy the debt to the secured party, the debtor is personally liable to the secured party for the payment of the deficiency.

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Definitions:

Valid

Legally sound and binding; conforming to the law or to established rules.

Basic Element

A fundamental or essential component or aspect of something.

Consideration

In contract law, a basic requirement for an enforceable agreement under traditional contract principles, defined in this text as legal value, bargained for and given in exchange for an act or promise. In corporation law, cash or property contributed to a corporation in exchange for shares, or a promise to contribute such cash or property.

Capacity

The ability to incur legal obligations and acquire legal rights.