Question

Which term describes the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan?Select one of the options below as your answer: A. collateral . B. interest . C. lien

Answer 1

The correct answer to this question is this one: "C. Lien." The term that describes the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan is called the lien. Hope this helps answer your question.

Answer 2

ANSWER: C. lien

Step-by-step explanation: Lien provides the right to a lender to sell off the collateral to get back the principal if the borrower fails to repay. Lien is a conditional right of ownership to the lendor which bars the debtor to sell off the collateral without paying the lendor.