Modifier Issue

[rohit9359]

Q. Declining values for farm equipment and land, the collateral against which farmers borrow to get through the harvest season, is going to force many lenders to tighten or deny credit this spring

A...
b...
C...
D. which farmers use as collateral to borrow against to get through harvest season, are
E. the collateral against which farmers borrow to get through the harvest season, are.

I believe the underlined part modifies the complete clause before it. Here,
"the collateral against which farmers borrow to get through the harvest season" modifies "Declining values for farm equipment and land" but it should just modify "farm equipment and land".

OA is (E). But i thought (D) is better option since which is used to modify the noun preceding it.

Could you guyz please explain?

Thanks much,
Rohit.

[Vemuri]

In D, "which" modifies "Declining values for farm equipment and land". The declining values cannot be the collatoral against which farmers borrow.

In E, the collatoral rightly refers to the equipment & land.

[sudeep_ar]

Can someone please put more light into it?

[PAB2706]

infact i was thinking otherwise..which is modifying the noun preceding it...

pls someone enlighten. which usually creates a lot of problem while selecting the right answer.

[rohit9359]

seniors please help!

Rohit.