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8 March, 23:19

If a borrower provides collateral and fails to repay the loan,

A) the borrower may cancel the loan to get the collateral.

B) the lender can sell the collateral to cover losses.

C) the borrower must buy the collateral back.

D) the lender keeps the collateral in case of late payment.

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Answers (1)
  1. 8 March, 23:46
    +1
    The correct option is B.

    In case of non repayment of loan, the lender can sell the collateral and used the proceeds to cover his losses. A collateral is always in form of properties which are substantial in value, it is often requested that borrowers provide collateral in order to reassure lenders that they will pay up.
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Home » Business » If a borrower provides collateral and fails to repay the loan, A) the borrower may cancel the loan to get the collateral. B) the lender can sell the collateral to cover losses. C) the borrower must buy the collateral back.
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