Proceeds from the disposition of collateral after default are distributed in a certain order with any surplus generally going to the creditor.

A purchase-money security interest in consumer goods is created when a person buys the goods on credit.

Donna goes through an involuntary bankruptcy proceeding. An involuntary bankruptcy occurs when​

A creditor can demand payment from the surety before the debt is due.

Business Rental Corporation (BRC) and Cartage Trucking Company enter into a contract for a lease of ten hydraulic lifts. Under the perfect tender rule, BRC must ship or tender goods to the lessee that

A preference occurs when a debtor transfers property or money favoring one creditor over others.

Until the time for performance under a contract expires, the seller has a right to cure.

A lessor is a party who transfers the right to the possession and use of goods under a lease.

On default, a secured party who chooses not to retain the collateral must dispose of it in a commercially reasonable manner.

All debts are dischargeable in bankruptcy.