One of the rights of a lending bank in the event a borrower defaults is the right to sell the security without notice to the borrower.

Question

Quizplus · Accepted Answer

This is known as the power of sale and is typically included in the loan agreement or security agreement. The bank is legally allowed to sell the security to recover the outstanding balance of the loan without giving notice to the borrower.

One of the Rights of a Lending Bank in the Event