Maddie enters into a secured consumer debt transaction with Friendly Bank. When Maddie pays the loan in full, Friendly Bank is required to file a statement indicating that it no longer claims a secured interest in the collateral.

Question

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Upon full repayment of a secured loan, the lender (in this case, Friendly Bank) is typically required to file a release or satisfaction document that officially terminates its secured interest in the collateral, ensuring the borrower (Maddie) has clear title to the asset.

Maddie Enters into a Secured Consumer Debt Transaction with Friendly