If a sale of collateral produces any surplus funds after paying expenses and the underlying debt,the debtor is entitled to the surplus.

Question

Quizplus · Accepted Answer

This is generally true under most laws and contracts. The surplus belongs to the debtor as they are the owner of the collateral until it is sold to repay the debt. However, there may be exceptions to this rule depending on the specific terms of the agreement or the laws of the jurisdiction.

If a Sale of Collateral Produces Any Surplus Funds After