Which of the following statements about a creditor's right to repossess collateral is false?
A)The Code authorizes a creditor to repossess collateral when the debtor defaults.
B)The creditor can obtain the collateral through self-help if she can obtain possession peacefully.
C)If the collateral cannot be obtained without disturbing the peace,the creditor must go through the courts to repossess the collateral.
D)If the collateral is intangible,the secured party can get payments made to her,even if performance has not been rendered to the debtor.

Question

Quizplus · Accepted Answer

If the debtor does default,the creditor is entitled under the Code to possession of the collateral.If through self-help the creditor can obtain possession peaceably,he may do so.However,if the collateral is in the possession of the debtor and cannot be obtained without disturbing the peace,then the creditor must take court action to repossess the collateral [9-609].If the collateral is intangible,such as accounts,chattel paper,instruments,or documents,and performance has been rendered to the debtor,the secured party may give notice and have payments made or performance rendered to her [9-607].

Which of the Following Statements About a Creditor's Right to Repossess