Secured Loans and Collateral Rights
Jonathan purchases a car and pledges it as collateral for a bank loan. Which of the following statements is true after the loan has been disbursed?
A
The bank may repossess the car at any time because it is the property of the bank.
B
The bank holds a lien on the car and will repossess it when the lien is removed.
C
If Jonathan defaults on a payment, the bank may repossess the car.
D
The bank is the debtor and Jonathan is the creditor.
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