Nice.  Thanks for the clarification on that point!  There are a ton of loop-holes and "outs" written into their convoluted tax code.  It was written by insanely wealthy robber-barons; for robber-barons.

fluff_stack

I actually do show a loan default in the video, peep the timestamp 6:47: http://tinyurl.com/368cj3vn

You are correct that the lender only needs 1 transaction to take the borrower's collateral in case of default

supertestnet

bitcoin

Loan shark: Super Testnet's non custodial, bitcoin only borrow and loan tool

Another method, not shown in the video, is a loan which the borrower decides to default on, and never repay. In this scenario, from what I understand with limited research, is only one payment is ever required to prove it was a loan in good faith. Some loans default. Credit markets are a bitch.  ;)