Question

Roundwell motors purchases a manufacturing plant for​ $15 million, pays​ $5 million in cash as down​ payment, and borrows the remaining​ $10 million from home providence bank. to secure the​ loan, roundwell gives the plant as collateral to home providence bank. if roundwell defaults on their​ payment, what is the recourse available to home providence to recover the​ loan?

Answer 1

A mortgage is the resource available to home providence to recover the loan.

A mortgage is defined as a legal agree between a bank/creditor with a a person or business. They lend money with an interest rate in exchange for having full ownership of the persons title (house/business building) if the person does not pay.