A secured creditor must ________ the collateral if he or she receives a written objection to the proposal from a person entitled to receive notice within 20 days after the notice was sent.
A)dispose of
B)possess of
C)retain
D)claim

Question

Quizplus · Accepted Answer

A secured creditor must dispose of the collateral if they receive a written objection to the proposal from a person entitled to receive notice within 20 days after the notice was sent. The creditor cannot possess or retain the collateral indefinitely if there is an objection. Claiming the collateral is not a valid option as the creditor already has a claim to the collateral as security for the debt. Therefore, the best option is to dispose of the collateral as necessary according to the terms of the security agreement.

A Secured Creditor Must ________ the Collateral If He or She