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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When does an obligor acquire the rights of the secured party?

Upon disposition of the collateral
After receiving a transfer of rights
When they receive payment in full
On the forced liquidation of the asset

The correct answer is: After receiving a transfer of rights

An obligor acquires the rights of the secured party after receiving a transfer of rights because this transfer is a legal mechanism through which the rights held by the secured party are officially conveyed to the obligor. This process can occur in various circumstances, such as when the secured party sells or assigns the rights under a security agreement. The essential aspect is that the obligor must have received a formal transfer in order to obtain those rights. The other options focus on different scenarios such as the disposal of collateral, making full payment, or forced liquidation of assets, but these do not inherently lead to the obligor acquiring the secured party's rights directly. The acquisition of rights is specifically tied to the formal transfer process.