American Bankers Association Exam CRCM Topic 6 Question 95 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 95
Topic #: 6

[All CRCM Questions]

First National Bank made a loan to Lawrence & Co. for the purpose of purchasing landscape equipment, secured by a storage lot the company owneD. The borrower made payments for a year and then defaulteD. Three months passed without any communication or payments from the borrower, despite the bank's efforts to locate the company's owners. The company appears to have ceased operations. What is the bank's BEST course of action?

ADo nothing, because the bank has no actual knowledge of abandonment and has not foreclosed on the property

BMake reasonable inquiries to determine whether the property is abandoned and if so, report it as abandoned

CLocate the borrower, foreclose on the property, and report the transaction as a foreclosure

DReport the property as abandoned

Show Suggested Answer

Suggested Answer: D

by Willard at Aug 26, 2024, 01:37 PM

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Marge

53 minutes ago

I think the bank should make reasonable inquiries to determine if the property is abandoned.

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