Hal's Hardware store defaults on a debt to Intrastate Bank,which takes possession of the collateral securing the debt. Intrastate sells the collat-eral. The proceeds from the sale are applied first to
A)the balance of Hal's debt to Intrastate.
B)Hal's debts to other creditors.
C)Intrastate's expenses for the sale.
D)the minimum amount Hal's needs to stay in business.

Question

Quizplus · Accepted Answer

The proceeds from the sale of collateral are first applied to cover the expenses incurred by Intrastate Bank for conducting the sale.

Hal's Hardware Store Defaults on a Debt to Intrastate Bank,which