Which of the Following Is TRUE? a Bank Will Be

Multiple Choice

Which of the following is TRUE? A bank will be more likely to lend money to a borrower if the borrower grants the bank a security interest in its assets because

A) the security interest prevents the borrower from defaulting.
B) if the borrower defaults, the security interest guarantees that those assets can be seized by the bank, sold, and the proceeds used to pay back the loan.
C) if the borrower defaults, the security interest means that the bank has a right to seize the assets, sell them, and use the proceeds to pay back the loan.
D) if the borrower defaults, the bank will be able to get a court order allowing it to seize the assets, sell them, and use the proceeds to pay back the loan.
E) the bank does not have to worry about whether the loan is paid back because it can keep the debtor's assets.