Hal's Hardware Store defaults on a debt to Intrastate Bank,which takes possession of the collateral securing the debt.Intrastate sells the collat?eral.The proceeds from the sale are applied first to
A)Hal's debt to Intrastate.
B)Hal's debts to other creditors.
C)Intrastate's fees for the sale.
D)payments Hal's made on the debt to Intrastate.

Question

Quizplus · Accepted Answer

The proceeds from the sale of collateral are first applied to cover the costs and fees associated with the sale, such as Intrastate's fees for the sale, before being applied to the debt itself.

Hal's Hardware Store Defaults on a Debt to Intrastate Bank,which