Question

Hiram is a debtor to Central Credit Union, a secured party. If Hiram fails to maintain insurance on the collateral, he has likely a. attached the security agreement. b. perfected the security agreement. c. terminated the security agreement. d. defaulted on the security agreement.

Answer 1

Answer:

D). defaulted on the security agreement.

Explanation:

From the question we are informed about Hiram who is a debtor to Central Credit Union, a secured party. If Hiram fails to maintain insurance on the collateral, he has likely defaulted on the security agreement.

A security agreement as regards to the law of the United States, can be defined as contract which governs the relationship that exist between the parties that are involved in a kind of financial transaction that is been known as a secured transaction. It gives lender kind of security interest as regards to a specified asset/property which is has been pledged as collateral. Security agreements do compose of

covenants which states provisions for the advancement of funds as well as

repayment schedule and insurance requirements.