Answer:
D). defaulted on the security agreement.
Step-by-step explanation:
From the question we are informed about Hiram who is a debtor to Central Credit Union, a secured party. If Hiram fails to maintain insurance on the collateral, he has likely defaulted on the security agreement.
A security agreement as regards to the law of the United States, can be defined as contract which governs the relationship that exist between the parties that are involved in a kind of financial transaction that is been known as a secured transaction. It gives lender kind of security interest as regards to a specified asset/property which is has been pledged as collateral. Security agreements do compose of
covenants which states provisions for the advancement of funds as well as
repayment schedule and insurance requirements.