Question

Which term describes that right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan?

Answer 1

Answer:

The term is called Lien.

Step-by-step explanation:

A collateral is something that is kept against the loan and collateral has usually more value than the loan value.

It can be seized if the loan is not repaid. When the borrower defaults, the lender can seize the property and sell it to recoup his loan amount.

This term is called Lien.

Lien gives the right to a lender, where he can sell off the collateral, to get back his money if the borrower fails to repay.

Answer 2

Answer:

Lien

Step-by-step explanation:

The correct answer to this question is  "Lien". This is 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.