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A borrower is considered to have defaulted on a loan if he fails to:

a. return the loaned security after appropriate notice from the lender.
b. pay dividends or interest on the loaned securities to the lender.
c. meet a demand for additional collateral.
d. All of the above.

1 Answer

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Final answer:

The correct answer is d. All of the above.

Step-by-step explanation:

A borrower is considered to have defaulted on a loan if he fails to:

  1. return the loaned security after appropriate notice from the lender.
  2. pay dividends or interest on the loaned securities to the lender.
  3. meet a demand for additional collateral.

Therefore, the borrower is considered to have defaulted on a loan if any of the above conditions are not met, which means the correct answer is d. All of the above.

User Bhavuk Mathur
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