Wrett purchases a new four-wheeler with a loan from his bank. The bank requires that he use his car, which is paid off, as collateral for the loan he secured from the bank. The value of the 4-wheeler is $2500.00. The value of the car is $15,000.00. Wrett defaults on his loan for the 4-wheeler and thus is forced to sell his car to repay the loan. Which statement below is true regarding this secured transaction? Multiple Choice Since the value of the car far exceeds the value of the 4-wheeler, the bank must accept an alternate good closer to value of the 4-wheeler. Wrett must dispose of his car and apply the proceeds to the loan and if there is any surplus the money belongs to Wrett. The bank will sell the car for the value of the loan of the 4-wheeler, not the actual fair market value of the car. Wrett must hand over physical possession and title to the car. In a workout, creditors are usually paid in all of the following ways except, Multiple Choice Bankruptcy Future cash flow Equity infusion New financing Errors and omissions (E&O) liability insurance indemnifies the directors and executive officers of a corporation if they breach any of their __________ duties. Multiple Choice mens rea fiduciary voir dire corporate
Wrett purchases a new four-wheeler with a loan from his bank. The bank requires that he use his car, which is paid off, as collateral for the loan he secured from the bank. The value of the 4-wheeler is $2500.00. The value of the car is $15,000.00. Wrett defaults on his loan for the 4-wheeler and thus is forced to sell his car to repay the loan. Which statement below is true regarding this secured transaction?
Since the value of the car far exceeds the value of the 4-wheeler, the bank must accept an alternate good closer to value of the 4-wheeler.
Wrett must dispose of his car and apply the proceeds to the loan and if there is any surplus the money belongs to Wrett.
The bank will sell the car for the value of the loan of the 4-wheeler, not the actual fair market value of the car.
Wrett must hand over physical possession and title to the car.
In a workout, creditors are usually paid in all of the following ways except,
Bankruptcy
Future cash flow
Equity infusion
New financing
Errors and omissions (E&O) liability insurance indemnifies the directors and executive officers of a corporation if they breach any of their __________ duties.
mens rea
fiduciary
voir dire
corporate
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