In a legal context, what does "repossession" allow a lender to do?

Repossession allows a lender to take back an asset that was pledged as collateral for a loan when the borrower fails to meet the terms of the loan, usually by not making the required payments. This legal process gives the lender the right to recover the secured asset as a way of mitigating their losses on the unpaid debt.

For example, if a borrower takes out a loan to purchase a car and then stops making payments, the lender can initiate repossession to reclaim the vehicle. This process serves as a protective measure for lenders, enabling them to recover some or all of the money they lent to the borrower by selling the repossessed asset.

The other options do not accurately describe repossession. Forgiving the debt would mean the lender relinquishes their claim, which is contrary to the purpose of repossession. Providing additional loans or extending the repayment period involves different arrangements and negotiations, which are not directly related to the act of repossessing a secured asset.