Which of the following must be in place in order for a lender to appoint a receiver or manager in the event of default on a commercial operating loan?

Question

Quizplus · Accepted Answer

A general security agreement must be in place for a lender to appoint a receiver or manager in the event of default on a commercial operating loan. A general security agreement gives the lender a security interest in all of the borrower's assets, both present and future, as collateral for the loan. This allows the lender to appoint a receiver or manager to take control of the borrower's assets and manage them in order to repay the loan in the event of default. Deficiency of assets, specific security agreement, and acceleration clause may be relevant in other contexts but are not necessary for the appointment of a receiver or manager on default of a commercial operating loan.

Which of the Following Must Be in Place in Order