What is the purpose of deficiency judgment

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Reference no: EM131217221

Little Oil is an oil-drilling company that has defaulted on several of its loans. Giantoil Oil Refining is owed $230,000 on a loan that is secured by some of Little Oil’s drilling equipment. This equipment is worth around $180,000. Giantoil has repossessed the equipment pursuant to its security agreement and has notified Little Oil that it proposes to keep the equipment rather than sell it. Little Oil does not want Giantoil to keep the equipment and wants it to be sold. Discuss the legal issues in this situation. There is a deficiency judgement here. What is the purpose of a deficiency judgment? Can Giantoil choose to keep the equipment instead of selling it?

Reference no: EM131217221

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