Maritime Bank holds a security interest in Ned's fishing trawler. Ned defaults on the debt. Maritime takes possession of the boat and notifies Ned that it will be sold to recover some of the unpaid debt. Before the sale, Ned can regain possession by
A)obtaining a deficiency judgment.
B)agreeing to a floating lien.
C)exercising the right of redemption.
D)requesting a commercially reasonable sale.

Question

Quizplus · Accepted Answer

Ned can regain possession of the boat before the sale by exercising the right of redemption, which involves paying off the debt (including any interest and fees) to reclaim the collateral before it is sold.

Maritime Bank Holds a Security Interest in Ned's Fishing Trawler