Jo purchases a car from Used-Carz and signs a security agreement that identifies Jo's "blue car" as the collateral. If Jo is unable to make payments, how likely would Used-Carz be in a suit to recover the collateral if Jo defaults on her payments?
A) Very likely because Jo's car is identified as collateral.
B) Unlikely, because the collateral is not clearly described in the written agreement.
C) Very likely, because, although the collateral is not clearly described in the written agreement, creditors cannot lose rights to collateral.
D) Very likely, because collateral need not be identified in a security agreement.
E) Unlikely, because Used-Carz must first attempt to repossess the car.

Question

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The Answer of Jo purchases a car from Used-Carz and signs a security agreement that identifies Jo's "blue car" as the collateral. If Jo is unable to make payments, how likely would Used-Carz be in a suit to recover the collateral if Jo defaults on her payments?
A) Very likely because Jo's car is identified as collateral.
B) Unlikely, because the collateral is not clearly described in the written agreement.
C) Very likely, because, although the collateral is not clearly described in the written agreement, creditors cannot lose rights to collateral.
D) Very likely, because collateral need not be identified in a security agreement.
E) Unlikely, because Used-Carz must first attempt to repossess the car.

Jo Purchases a Car from Used-Carz and Signs a Security