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American_Bankers_Association

CTFA · Question #312

_________ is a legal note giving to the lender the right to sell collateral if the borrower defaults on the obligation.

The correct answer is C. Collateral note. See the full explanation below for the reasoning.

Fiduciary and Trust Activities

Question

_________ is a legal note giving to the lender the right to sell collateral if the borrower defaults on the obligation.

Options

  • AChattel mortgage
  • BLien
  • CCollateral note
  • DLoan application

How the community answered

(38 responses)
  • A
    8% (3)
  • B
    3% (1)
  • C
    71% (27)
  • D
    18% (7)

Topics

#collateral note#secured lending#lender rights#loan default

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