To most securely minimize the risk of loss on a loan evidenced by a note, a creditor needs only the debtor's promise that the note will be paid.

Question

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While the debtor's promise is important, it is not the only factor in minimizing the risk of loss. A creditor would also want to consider the debtor's creditworthiness, collateral, and any potential co-signers or guarantors.

To Most Securely Minimize the Risk of Loss on a Loan