Question

If a person does not deliver the borrowed security within 35 days, what will happen?

1) The person will be fined
2) The person will be charged interest
3) The person will be banned from borrowing securities in the future
4) The person will be required to return the security immediately

Answer 1

If a person does not deliver the borrowed security within 35 days, they may be fined, charged interest, banned from borrowing securities in the future, or required to return the security immediately.

Step-by-step explanation:

If a person does not deliver the borrowed security within 35 days, a few things can happen.

1. The person may be fined for not returning the borrowed security on time.
2. The person may be charged interest for the additional time they hold onto the security.
3. The person may also be banned from borrowing securities in the future as a consequence of not following the loan agreement.
4. Lastly, if the person fails to return the security immediately after the 35 days, they may be required to return it immediately.

It is important to honor loan agreements and return borrowed securities within the specified timeframe to avoid these penalties.