Nola Treadway is a loan officer with Island Bank. Mr. Tocher Haupt applied for a personal loan at Island Bank. According to Island Bank's credit policy Mr. Haupt did not specify sufficient collateral in his application form. Required: Advise Nola which ONE of the following decisions would be the best regarding Mr. Haupt's application.

a. Because Mr. Haupt has insufficient collateral the application should be declined outright.

b. Nola may enquire from Mr. Haupt whether he may have access to additional collateral to offer to the bank.