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What will happen if the collateral secured by the bank depreciates and is not enough to cover the remaining balance of the default customer's loan?

What will happen if the collateral secured by the bank depreciates and is not enough to cover the remaining balance of the default customer's loan? Should the bank still insist on requesting the customer's payment to the remaining balance after the collateral is used for payment, turnover it to third-party collections, or write it off as bad debt?

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