American Bankers Association CRCM Exam - Topic 6 Question 95 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 95
Topic #: 6

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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Cecil

5 months ago

Reporting it as abandoned seems too quick, what if they come back?

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Tora

5 months ago

B makes sense, gotta confirm before taking action.

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Lonna

6 months ago

Wait, how can they be sure it's abandoned?

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Leonora

6 months ago

Agree, C seems like the best option here.

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India

6 months ago

I think they should definitely foreclose if the company is MIA.

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Rocco

6 months ago

I’m a bit confused about the timeline here. If they haven’t heard from the borrower in three months, does that mean they should just wait? I feel like doing nothing (option A) isn’t a good idea either.

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Trevor

6 months ago

I practiced a similar question where the bank had to decide whether to report a property as abandoned. I think option D could be too hasty without confirming the status of the company.

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Ethan

7 months ago

I'm not entirely sure, but I feel like if the bank hasn't foreclosed yet, they might need to locate the borrower first. Option C sounds like it could be right, but it seems risky without more information.

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Wynell

7 months ago

I remember discussing something about the importance of verifying abandonment before taking action. I think option B might be the best choice.

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Thomasena

7 months ago

I'm pretty confident the best option is to locate the borrower, foreclose on the property, and report it as a foreclosure. That way the bank can recoup its losses from the defaulted loan.

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Princess

7 months ago

Okay, I've got this. The bank should report the property as abandoned since the borrower has ceased operations and there's been no communication or payments for 3 months. That seems like the clearest path forward.

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Gladis

7 months ago

This seems like a tricky situation. I'd want to carefully review the bank's policies and procedures for handling defaulted loans and abandoned properties before deciding on the best course of action.

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Cherri

7 months ago

Hmm, I'm a bit unsure here. I think the key is determining whether the property is truly abandoned, so I'd focus on making reasonable inquiries to confirm that first.

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Lindsey

7 months ago

Hmm, I'm a bit unsure about this one. The options mention some Kubernetes components, but I'm not sure which one specifically handles permissions-based workload isolation. I'll need to review my notes on Kubernetes security features.

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Bea

12 months ago

Option B sounds like the most prudent choice. Gather some information before making any moves. Don't want to step in any metaphorical potholes, you know?

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Josefa

12 months ago

Hmm, I dunno. Maybe the bank should just declare the property as 'abandoned and spooky' and see what happens. *wink wink*

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Willodean

10 months ago

D) Report the property as abandoned

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Deangelo

10 months ago

Haha, that would be interesting! But I think option B is the best course of action.

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Shonda

10 months ago

C) Locate the borrower, foreclose on the property, and report the transaction as a foreclosure

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Vernice

11 months ago

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

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Yen

11 months ago

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

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Crista

12 months ago

Option A? Really? The bank can't just sit on its hands. It needs to take some kind of action here.

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Gladys

10 months ago

D) Report the property as abandoned

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Keva

11 months ago

C) Locate the borrower, foreclose on the property, and report the transaction as a foreclosure

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Kathrine

11 months ago

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

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Annmarie

1 year ago

I think option D is the best choice. If the company has clearly abandoned the property, the bank should report it as such.

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Vi

11 months ago

D) Report the property as abandoned

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Erasmo

11 months ago

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

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Rodolfo

12 months ago

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

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Marya

1 year ago

Option C is the way to go. The bank needs to foreclose on the property and report it properly.

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Billye

12 months ago

Foreclosing on the property and reporting it as a foreclosure is the most appropriate step for the bank to take.

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Marta

1 year ago

I agree, option C is the best course of action in this situation.

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Malcom

1 year ago

Option B seems like the most reasonable approach. The bank should investigate the property's status before taking any drastic action.

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Sherill

11 months ago

That's a good point. Maybe the bank should try to locate the borrower first before making any final decisions.

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Jennie

11 months ago

But what if the company suddenly resurfaces and claims they were still using the property? Wouldn't it be risky to report it as abandoned without confirmation?

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Marjory

11 months ago

If the company has truly ceased operations, then reporting the property as abandoned would be the right move.

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Tamie

11 months ago

I agree, it's important to make sure the property is actually abandoned before taking any further steps.

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Rene

1 year ago

I think reporting the property as abandoned would be the best course of action. It's better to be safe than sorry.

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Kanisha

1 year ago

I agree with Marge. It's important to follow proper procedures in this situation.

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Marge

1 year ago

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

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