Question

Which of these statements describes a lien?

A.the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan

B.the right of a lender to refuse a loan if the borrower hasn't repaid previous loans on time

C.the right of a lender to increase interest rates depending on economic factors

Answer 1

for plato, it is a. the right of a lender to sell collateral to get back the principal if the borrower cannot repay the loan

posting this for future users!

Answer 2

The correct answer is A.

Step-by-step explanation:

A lien is the right of a lender to sell the collateral to recover the principal if the borrower is unable to repay the loan. This is a right, which means that it is a form of security interest given over an item of property to secure the payment of a debt or the performance of some other obligation.

Have a nice day!