First Bank loaned $400,000 to Thomas,taking a security interest in his yacht.Thomas defaulted on the loan and First Bank repossessed the boat.First Bank sold the yacht at a public sale.The sale yielded $50,000 more than the debt.First Bank

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When a secured party sells collateral and the sale yields more than the amount of the debt, the surplus must be returned to the debtor.

First Bank Loaned $400,000 to Thomas,taking a Security Interest in His