Under no circumstance may a secured creditor repossess and retain the debtor's collateral in satisfaction of the debtor's obligation.

Question

Quizplus · Accepted Answer

The statement is false. A secured creditor may repossess collateral in certain circumstances, such as the debtor's default, but they may not retain the collateral as satisfaction of the debtor's obligation without following the appropriate legal procedures.

Under No Circumstance May a Secured Creditor Repossess and Retain