Macig enters into a secured consumer debt transaction with Friendly Bank.When Macig pays the loan in full,Friendly Bank is required to file a statement indicating that it no longer claims a secured interest in the collateral.

Question

Quizplus · Accepted Answer

When a borrower pays off a secured loan in full, the lender is required to release the lien on the collateral and file a statement indicating that it no longer claims a secured interest in it. This is known as a release of lien or satisfaction of mortgage, depending on the type of collateral involved. Therefore, the statement in the question is true.

Macig Enters into a Secured Consumer Debt Transaction with Friendly