Duncan Corp. is declared bankrupt. The Royal Bank has a mortgage on its manufacturing plant. Employees have a claim for $1,000 each for unpaid wages. The trustee in bankruptcy's fees are $10,000. An unpaid supplier of steel has a claim for products supplied. Which of the above is a secured creditor?

Question

Quizplus · Accepted Answer

The bank is a secured creditor because it has a mortgage on the manufacturing plant, giving it a security interest in the property.