Upon the debtor's default,the creditor may sell the collateral at a public or private sale,or lease it to a third party.

Question

Quizplus · Accepted Answer

This statement is true. When a debtor defaults on a loan secured by collateral, the creditor has the right to sell the collateral at a public or private sale, or lease it to a third party to satisfy the debt. This is known as the creditor's right of repossession.

Upon the Debtor's Default,the Creditor May Sell the Collateral at a Public