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Use the Fact Situation in Q2 to Answer the Related

Question 9

Multiple Choice

Use the fact situation in Q2 to answer the related question that follows. Assume that the bank is a secured creditor of General Widgets and that its security is greater than the amount that the company owes to the bank,which enforces its security.In such a case,


A) the bank cannot enforce its security,but it will share rateably with the other secured creditors.
B) the bank cannot enforce its security during the bankruptcy of the company.
C) the bank can retain the full amount recovered under its security.
D) the bank must repay the trustee in bankruptcy any excess recovered over the amount of the debt owed it.
E) none of the above

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