Donna defaulted on her loan owed to Second State Savings and Loan. The loan was secured with Donna's car. Donna used the car for personal and family reasons. Which statement is correct?

a. Second State may take Donna's car without a court order if this can be done without a breach of the peace.

b. Second State may take Donna's car without a court order even if it means a breach of the peace.

c. Second State may not take Donna's car because it is a consumer good.

d. Second State may not take Donna's car because perfection was automatic.

Question

Business

Sweetie

17 December, 11:35

Donna defaulted on her loan owed to Second State Savings and Loan. The loan was secured with Donna's car. Donna used the car for personal and family reasons. Which statement is correct?

a. Second State may take Donna's car without a court order if this can be done without a breach of the peace.

b. Second State may take Donna's car without a court order even if it means a breach of the peace.

c. Second State may not take Donna's car because it is a consumer good.

d. Second State may not take Donna's car because perfection was automatic.

+2

Answers (1)

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Anabella · Answer 1

"Second State may not take Donna's car because it is a consumer good " is correct statement.

Explanation:

In the 1980s and 1990s, the savings and loan crisis led to 1,043 defaults in 3,234 savings and loan companies in the United States: the Federal Savings and Loan Program (FSLI).

A lending and saving or "thrift" (a joint enterprise known in the UK by the name of "building society) is a financial institution that takes deposits and gives mortgage, auto and other personal loans to its members.

In 1995 the RTC had estimated 747 failed institutions globally, rated at between $402 and $407 billion in gross book value. In 1996, a maximum of $160 billion, including $132.1 billion collected from taxpayers, was calculated by the General Accounting Office. The S&L issue was overcome by the RTC.