The term ________ refers to a secured creditor's possession of collateral on a debtor's default and proposal to retain the collateral in satisfaction of the debtor's obligation.
A) repossession
B) disposal of the goods
C) disposing of collateral
D) retaining the collateral

Question

Quizplus · Accepted Answer

Retaining the collateral is the act of keeping the secured asset (collateral) to satisfy the debt of the borrower who has defaulted on their loan. It is a legal right granted to the creditor under the terms of the security agreement. Repossession and disposal of the goods also refer to the same concept but are more specific in their meaning.

The Term ________ Refers to a Secured Creditor's Possession of Collateral