What is your potential liability from the deficiency payments clause if you default?

A) Nothing, since the loan is in default it invalidates all loan clauses.
B) You will have to pay any legal or repossession fees incurred by the lender.
C) You will have to pay the remainder of the loan balance if the proceeds from the repossession are not sufficient to pay off the loan.
D) Both B and C are correct.

Answer: D