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katovenus [111]
3 years ago
7

Adam borrowed money to buy a new car. The bank has a lien on the car. What could happen if Adam doesn't make his payments on tim

e.
Business
1 answer:
posledela3 years ago
4 0

Answer: The bank could sell the car.

Explanation:

A lien refers to a claim against an asset which is used as a collateral in order to satisfy a debt.

Since we are informed that Adam borrowed money to buy a new car and that the bank has a lien on the car, in a situation whereby Adam doesn't make his payments on time, the bank can end up selling his car and use the fund to settle the debt that he owes.

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