Marina borrowed $5000 of the $25 000 she required to purchase her car from ImaBigBank.The only financing document Marina signed was ImaBigBank's loan agreement.Marina had a number of problems with the car and subsequently sold it.The outstanding balance of the loan is $1500.In the event Marina defaults on the loan,which of the following would be the most likely result?

Question

Marina borrowed $5000 of the $25 000 she required to purchase her car from ImaBigBank.The only financing document Marina signed was ImaBigBank's loan agreement.Marina had a number of problems with the car and subsequently sold it.The outstanding balance of the loan is $1500.In the event Marina defaults on the loan,which of the following would be the most likely result?

Quizplus · Accepted Answer

Since Marina signed a loan agreement with ImaBigBank, the bank has the right to obtain a judgment against her if she defaults on the loan. This means that the bank can take legal action to enforce the repayment of the loan from Marina's general financial resources, such as her savings, wages, or property. Options A, B, and C are unlikely outcomes since the bank simply has the right to recover the outstanding debt and does not hold title to the car or require Marina's cash flow projections.

Marina Borrowed $5000 of the $25 000 She Required to Purchase