Question

Laurel defaults on a loan owed to Maverick Bank. As a creditor, Maverick may attempt to place liens on all of Laurel's property except

A) Her primary residence
B) Her car
C) Her bank accounts
D) Her personal belongings

Answer 1

Maverick Bank cannot place liens on Laurel's primary residence.

Step-by-step explanation:

When a borrower defaults on a loan owed to a bank, the bank may attempt to place liens on the borrower's property as a way to recover the debt. However, there are certain exceptions to what can be liened. In the case of Laurel, Maverick Bank may not be able to place liens on her primary residence as it is generally protected by homestead exemption laws. Therefore, the correct answer is A) Her primary residence.