The Distinction Between a "Secured" Lender and an "Unsecured" Lender

The distinction between a "secured" lender and an "unsecured" lender is that in the event of the bankruptcy of the borrower

A) the unsecured lender has first claim on collateral.
B) the secured lender has first claim on collateral.
C) the secured lender has a first claim on all of the assets of the bankrupt borrower.
D) the unsecured lender has a first claim on all of the assets of the bankrupt borrower.

Correct Answer:

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