Which of the following statements is true of sale of collateral?
A) In disposing of the collateral, the creditor must use a commercially reasonable method to produce the greatest benefit to himself and not to the debtor.
B) The creditor must sell the collateral unless the consumer orally objects to the sale, otherwise, the creditor may keep the collateral in satisfaction of the debt.
C) If less than 80 percent of the purchase price has been paid, the creditor may propose to the debtor that the creditor keep the collateral in satisfaction of the debt.
D) If the creditor has a security interest in consumer goods and the debtor has paid 60 percent or more of the purchase price, the creditor must sell the repossessed collateral.

Question

Quizplus · Accepted Answer

If a creditor has a security interest in consumer goods and a debtor has paid 60 percent or more of the purchase price or debt (and has not agreed in writing to a strict foreclosure), the creditor must sell the repossessed collateral. If less than 60 percent of the purchase price or debt has been paid or if the collateral is other than consumer goods, the creditor may propose to the debtor that the creditor keep the collateral in satisfaction of the debt.

Which of the Following Statements Is True of Sale of Collateral