_________ is a legal note giving to the lender the right to sell collateral if the borrower defaults on the obligation.
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A. B. C. D.C
The correct answer to the question is B. Lien.
A lien is a legal claim or right against a property granted by the property owner to a creditor as security for a debt. The lien provides the creditor with the right to take possession of and sell the property in order to satisfy the debt if the debtor defaults on their obligation.
A lien can be placed on any property that the debtor owns, including real estate, personal property, or financial assets. The most common types of liens are mortgage liens, which are placed on real estate to secure a mortgage loan, and security interest liens, which are placed on personal property to secure a loan.
A chattel mortgage is a type of security interest lien that is specifically placed on movable personal property, such as equipment or inventory, to secure a loan. A collateral note is not a commonly used term in finance or law and does not refer to a specific type of security interest or lien.
A loan application is a document that a borrower completes to request a loan from a lender. It includes information about the borrower's financial situation, credit history, and the purpose of the loan. However, a loan application is not a legal document that grants the lender any rights or protections in the event of default.