Equipment Company holds a lien on Fertile Farm's equipment. The equipment can be sold to satisfy the debt

Question

Quizplus · Accepted Answer

A lienholder can sell the collateral (in this case, equipment) to satisfy the debt, but they must give notice to the debtor (Fertile Farm) before doing so. This ensures that the debtor is aware of the impending sale and has a chance to respond or satisfy the lien before the sale occurs. Notice to other creditors or the general public is not a legal requirement for the sale of collateral under a lien.

Equipment Company Holds a Lien on Fertile Farm's Equipment