What is repossession?
A) a right granted to a debtor to take possession of the collateral after repayment of the debt
B) a right granted to a debtor to take possession of the collateral before repayment of the debt
C) a right granted to a secured creditor to take possession of the collateral on default by the debtor
D) an act of possession of the collateral by the court owing to default by both debtor and creditor

Question

Quizplus · Accepted Answer

Repossession is a right granted to a secured creditor to take possession of the collateral on default by the debtor. This is typically done to recover the amount owed by the debtor through the sale of the collateral. A and B options are incorrect as they refer to a debtor's right to take possession of the collateral, which is not typically granted in a secured transaction. D is incorrect as repossession is not an act carried out by the court but by the creditor.

What Is Repossession