Michigan Collections Manager License Practice Test

If security is consumer goods, what additional information must the notice of disposition contain?

1. Advances

2. Co-signer who sends demand

3. Debt

4. All of the above

The correct answer is: All of the above

When security is classified as consumer goods, the notice of disposition is required to include additional information to ensure transparency and compliance with legal standards. This includes details about any advances made on the consumer goods, which clarifies the financial obligations associated with the security. Moreover, the notice must also specify the co-signer who sends the demand, ensuring that all parties involved have clear knowledge of who is asserting their rights regarding the consumer goods. Understanding the role of the co-signer is essential, as they may have liability or interests tied to the debt and the disposition process. Lastly, information regarding the debt itself is crucial, as it provides an understanding of the amount owed and the context of the consumer goods being disposed of. This transparency is important for both the debtor and creditor, as it clarifies the financial obligations and the circumstances surrounding the disposition of the security. Collectively, these elements—advances, information about the co-signer, and details regarding the debt—are necessary to provide a comprehensive view of the transaction, ensuring that all parties are adequately informed about their rights and obligations. Therefore, the correct answer comprises all these components.