Ludmilla and Sudash Formed ICING Inc, a Caterer That Specializes

Multiple Choice

Ludmilla and Sudash formed ICING Inc, a caterer that specializes in frozen desserts and elaborate ice sculptures used for centerpieces.The corporation purchased a refrigerated truck with the help of a loan from Bank X.The bank took a security interest in the truck to secure the full amount of the loan, which was $70 000.Unknown to the bank, however, the truck was worth substantially more than the value of the loan.If ICING goes bankrupt and the Bank X seizes and sells the truck for $80 000, the bank will

A) be allowed to retain the entire proceeds of the sale, $80 000.
B) not be allowed to retain the $80 000 proceeds from the sale of the truck.Any value beyond $70 000 will have to be paid into the bankrupt's estate for distribution to other creditors.
C) have to share the $80 000 proceeds from the sale of the truck with ICING's other creditors, whether secured or unsecured.
D) have to share the $80 000 proceeds from the sale of the truck with other secured creditors on a pro rata basis.
E) be able to keep only a portion of the $80 000 proceeds from the sale of the truck and sue ICING Inc for any deficiency.