Proceeds from the disposition of collateral after default on the underlying debt are distributed first to pay
A)reasonable expenses incurred by the secured party to sell the collateral.
B)the balance of the debt owed to the secured party.
C)junior lienholders who have made timely demands.
D)the debtor.

Question

Quizplus · Accepted Answer

The proceeds from the disposition of collateral after a default are first used to cover reasonable expenses incurred by the secured party in selling the collateral. This includes costs such as auction fees, legal expenses, and any other costs directly related to the sale of the collateral.

Proceeds from the Disposition of Collateral After Default on the Underlying