Which of the following remedies is available to a secured party after a debtor defaults?

The correct remedy available to a secured party after a debtor defaults is the ability to sell, lease, or retain the collateral in satisfaction of the debt. This is a fundamental aspect of secured transactions under the Uniform Commercial Code (UCC), which governs these types of arrangements.

When a debtor defaults on their obligations, the secured party has several options at their disposal regarding the secured collateral. The secured party can choose to take possession of the collateral and either retain it as satisfaction of the debt or sell or lease it to recover the amounts owed. This flexibility is crucial because it allows the secured party to act in a manner that best addresses their interests and the specifics of the default.

Retaining the collateral, for example, means that the secured party can reduce the outstanding loan amount by keeping the collateral instead of pursuing further payment. Selling or leasing the collateral, on the other hand, provides an opportunity to recoup the owed amounts more fluidly, especially if the collateral has considerable value in the market.

The other options presented do not accurately reflect the rights of the secured party after a default. For instance, reclaiming the collateral alone is too narrow, as it does not encompass the full range of actions that a secured party can take. Requiring a lawsuit before