What is the loan clause stating that if you default on a secured loan,the lender can repossess whatever is secured,as well as bill you for the difference if that repossession does not cover what you owe?

Question

Quizplus · Accepted Answer

The clause described in the question is known as the deficiency payments clause. It allows the lender to repossess the item that was secured with the loan and then bill the borrower for the difference if the proceeds from the sale of the item do not cover the total amount owed. This is also known as a deficiency balance or deficiency judgment.

What Is the Loan Clause Stating That If You Default