Bank X Has Recently Entered the Business of Extending Loans

Essay

Bank X has recently entered the business of extending loans secured on equipment.This means that it is willing to extend a loan for the estimated value of a piece of industrial equipment in return for a security interest in it.The security specifies that in the event of bankruptcy, Bank X retains the right to seize the equipment, sell it, and collect the proceeds in order to satisfy the loan.??Bank X's lawyer is unfamiliar with bankruptcy procedure and would like to know what happens if the amount collected from the sale of the equipment is worth more than the value of the security? What if it is less?