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American_Bankers_Association

CTFA · Question #310

A legal claim permitting the lender in case the borrower defaults, to liquidate the items serving as collateral to satisfy the obligation is called:

The correct answer is B. Lien. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

A legal claim permitting the lender in case the borrower defaults, to liquidate the items serving as collateral to satisfy the obligation is called:

Options

  • AChattel mortgage
  • BLien
  • CCollateral note
  • DLoan application

How the community answered

(45 responses)
  • A
    7% (3)
  • B
    80% (36)
  • C
    2% (1)
  • D
    11% (5)

Topics

#lien#collateral#loan default#secured lending

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