If the value of the collateral is less than the debt owed to the secured party,then:

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If the value of the collateral is less than the debt owed to the secured party, the secured party is still secured for the value of the collateral, but unsecured for the excess of debt over the value of the security. In other words, the secured party has the right to the collateral, but they cannot recover the remaining debt from the borrower's other assets unless they have a separate agreement or security interest in those assets.

If the Value of the Collateral Is Less Than the Debt