Darlene Debtor took out a loan from BCNB to purchase a car. She purchased
the car for the use by her family. Darlene defaulted on the loan. BCNB contacted
her after the default, but prior to repossessing the collateral, and asked her
to come by to sign a waiver of her right to redemption. Darlene did so, but
later that day found a family member to loan her the money she owed BCNB.
Darlene
went
to
BCNB and attempted to fulfill her obligation but BCNB stated that because
of the agreement it was too late to redeem. Is BCNB correct?
A) Yes, because Darlene signed the waiver after default.
B) No, because Darlene redeemed before
BCNB repossessed the collateral, disposed of the collateral or entered
into
a contract
for its
disposition,
or had accepted collateral in full or partial satisfaction of Darlene's obligation.
C) No, because the car was a consumer good and thus Darlene's waiver is
not enforceable.
D) None of the above.