If the value of the secured interest is less than the value of the collateral securing a loan, the secured creditor is ________.
A) an undersecured creditor
B) an oversecured creditor
C) in default
D) exempt from Chapter 7 bankruptcy

Question

Quizplus · Accepted Answer

An oversecured creditor is one whose collateral value exceeds the amount of the secured debt, meaning the value of the collateral is more than the loan amount.

If the Value of the Secured Interest Is Less Than