Michigan Collections Manager License Practice Test

Disable ads (and more) with a membership for a one time $2.99 payment

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.

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

What must a security agreement include regarding the debtor's information?

The name of the debtor
Only the signed agreement
The collateral's market value
A statement about client fees

The correct answer is: The name of the debtor

A security agreement must include the name of the debtor because this information is crucial for identifying the party that is obligated under the agreement. Including the debtor's name helps to establish a clear relationship between the creditor and the debtor, ensuring that all parties involved understand who is responsible for the obligations outlined in the agreement. Additionally, having the debtor's name documented is essential for enforcing the security interest and for any potential legal actions that may arise from default or disputes. The other options do not provide the same level of necessary legal identification. While the signed agreement is important for enforcing the contract, it is not specific to the debtor's information required for a complete security agreement. The market value of the collateral can be relevant but is not a prerequisite for the security agreement itself. Similarly, statements about client fees are unrelated to the fundamental requirement of identifying the debtor in the security agreement.