Which of the following best describes repossession?

Question

Quizplus · Accepted Answer

Repossession refers to the right granted to a secured creditor to take possession of the collateral upon default by the debtor. This is typically done to recover the amount owed on the debt through sale of the collateral. Option A is incorrect because repayment of the debt signifies the end of the creditor's rights over the collateral. Option B is incorrect because allowing the debtor to take possession of the collateral before repayment would defeat the purpose of granting security interest in the first place. Option D is incorrect because the court does not possess the collateral, but rather, an appointed agent of the creditor does.

Which of the Following Best Describes Repossession