Gina borrows from Hilltop Bank the funds to buy a car. The car secures the debt. Gina defaults on the loan. Hilltop takes possession of the car,planning to sell it to recover some of the unpaid debt. Before Hilltop sells the car or enters into a contract for its sale,Gina can pay the bank what she owes and take back the car. This is

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The right of redemption is the legal right of a borrower to regain ownership of an asset, such as a car or house, after defaulting on a loan and before the asset is sold by the lender to recover the debt. In this scenario, Gina has the right to pay off the loan and take back possession of the car before Hilltop sells it. Choice A, deficiency judgment, refers to the difference between the amount owed on a loan and the amount recovered through the sale of the collateral. Choice B, floating lien, is a security interest in an asset, such as a car or boat, that may not have a fixed location or may move from one location to another. Choice D, right of retention, refers to the right of a service provider to retain possession of a customer's property until payment is made for services rendered.

Gina Borrows from Hilltop Bank the Funds to Buy a Car