Question 6 (1 point) Cradit Facilities Led. (CFL) has a valid security interest in a truck owned by one of its clients. The client is now in default under the loan agreement and owes $24 000 to CFL. CFL has determined the truck will likely only sell for $19 000 on the second hand market. What is CFL's status with regard to any outstanding loan deficiency after acting on the security? It can pursue the outstanding balance of the loan by way of a receiver appointment. Had CFL sued first, then it could have acted on security, but acting on security first and not getting full recovery, it lost the right to sue for the outstanding balance. It has no further recover option since the security did not fully realize the outstanding balance. It can pursue the outstanding balance of the loan but only as an unsecured creditor. Question 7 (1 point) What role does legislation play with respect to enabling a creditor to begin legal action for arrears, retain or take possession of collateral, and appoint a receiver or manager? Legislative options can provide a quicker way to obtain some debt recovery, but full recovery only exists as an option for conventional common law litigation proceedings. It governs the entire process since legislation has replaced traditional common law principle in relation to debt recovery. It plays no role since credit is a strictly contractual relationship. A creditor may need to observe specific legislative rights in order to act on certain recovery options