Solved

John Borrowed $20,000 from a Bank,secured by His Car

Question 84

Multiple Choice

John borrowed $20,000 from a bank,secured by his car.John allowed his insurance to lapse when the car was destroyed in a hurricane.John's only other assets are a boat that has no security interests associated with it,located in the garage at the house he rents,and a checking account at another bank with $600 in it.The bank sues John for payment of the $18,000 remaining balance on the car loan,and obtains a judgment against John for that amount.If John does not pay this judgment,what can the bank do at this point?


A) nothing, because the collateral has been destroyed
B) obtain a writ of garnishment on the boat and the bank account
C) have the sheriff attach the property
D) obtain a writ of execution on the boat, and a writ of garnishment on the bank account
E) obtain a writ of garnishment on the boat and the bank account.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions