Which of the following is true of a collateral note?
A)The collateral cannot consist of stocks or bonds.
B)It is a note secured by a third person's guarantee.
C)It is a note secured by personal property.
D)The collateral cannot consist of some tangible personal property.

Question

Quizplus · Accepted Answer

A collateral note is secured by personal property, which can include stocks, bonds, or tangible personal property, making option C correct. Options A, B, and D are incorrect because collateral can include stocks or bonds, a third person's guarantee is not a requirement for a collateral note, and collateral can indeed consist of tangible personal property.

Which of the Following Is True of a Collateral Note