Question

A borrower is considered to have defaulted on a loan if he fails to:

a. return the loaned security after appropriate notice from the lender.
b. pay dividends or interest on the loaned securities to the lender.
c. meet a demand for additional collateral.
d. All of the above.

Answer 1

The correct answer is d. All of the above.

Step-by-step explanation:

A borrower is considered to have defaulted on a loan if he fails to:

1. return the loaned security after appropriate notice from the lender.
2. pay dividends or interest on the loaned securities to the lender.
3. meet a demand for additional collateral.

Therefore, the borrower is considered to have defaulted on a loan if any of the above conditions are not met, which means the correct answer is d. All of the above.