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Nancy Offers Her Mother's Wedding Ring as Collateral for a Loan

Question 18

Multiple Choice

Nancy offers her mother's wedding ring as collateral for a loan from a creditor. Shortly after entering into the agreement, Nancy fails to pay back the loan according to the schedule agreed upon. What remedies might the creditor have?


A) The creditor can take possession of the ring.
B) The creditor, after two missed payments may retake possession of the ring.
C) The creditor may take Nancy to court to seek payment according to the terms of the loan.
D) The creditor may seek criminal charges against Nancy.

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