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ohaa [14]
3 years ago
15

Adam borrowed money to buy a new car. the bank now has a lien. what can happen if Adam doesn't make his payments on time?

Mathematics
2 answers:
S_A_V [24]3 years ago
6 0
If Adam does not make his payments on time, the bank will charge an additional fee due to late payment.
The bank can also demand the possession of the car if Adam fail to pay for the entire loan despite many chances given by the bank. 
The car was the collateral for the loan because the loan was for the purpose of buying the car.
olganol [36]3 years ago
3 0

The <em><u>correct answer</u></em> is:

He will get charged a late fee, and if he continues not to pay, the bank will repossess his car.

Explanation:

When you borrow money and use an item for collateral, the bank has greater assurance that you will make your loan payments. If you do not make the payments, the bank will first assess late fees. If you continue not to pay it, the bank will issue a repossession order and confiscate the item you put up for collateral.

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