Michigan Collections Manager License Practice Test

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Prepare for the Michigan Collections Manager License Test with flashcards and multiple choice questions. Each question is equipped with hints and detailed explanations to enhance your understanding and readiness.

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What must a debtor do if a secured party requests?

Plead their case before defaults
Provide proof of their payment history
Make collateral available at a designated place
Notify the secured party of any upcoming sales

The correct answer is: Make collateral available at a designated place

When a secured party requests it, the debtor has an obligation to make the collateral available at a designated place. This is based on the principles of secured transactions, where the debtor has pledged specific assets as collateral for a loan or obligation. The secured party is entitled to access this collateral to verify its condition and ensure that it remains intact, as the risk associated with lending is mitigated by the existence and value of the collateral itself. The requirement for the debtor to provide access to the collateral stems from the secured party's rights under the security agreement and the relevant laws governing secured transactions. This provision protects the interests of the secured party, allowing them to potentially recover assets in the event of default. The other options may involve communication or documentation that can be valuable in a transaction, but they do not directly address the debtor's legal obligation regarding the physical availability of the collateral in the event of a request from the secured party.