Obviously,
Nicol has the right to the collateral because of her claim of the perfected
security interest. This type of
legal claim is based on a collateral that has been gained through a defaulted
loan. When the borrower, who in this case was Lena, fails to fulfill the duties of completing his/her
payments for the loan, the lender (Nicol) has the right to sell the collateral to
regain the unpaid loan balance of the borrower.
