Exam 13: Negotiable Instruments, Credit, and Bankruptcy

There is a model United Nations bankruptcy law.

Don borrows $90,000 to buy a home. His mortgage is with Western Bank. Don is unable to make his mortgage payments. Western forecloses on Don's house and sells it in a judicial sale. The bank gets $95,000 for the house. In this case, it:

An artisan's (possessory) lien attaches to personal property.

Promises to pay include drafts and checks.

Bankruptcy proceedings hold that transfers of debtor's property ____to the bankruptcy filing are void.

Goods that are movable at the time a security interest attaches, or begins are classified as:

An evaluation of a person's financial situation, a discussion of alternatives to bankruptcy, and a personal budget plan are all included in:

As a creditor, a business should:

If a creditor is successful in a legal action against a debtor, the court will award the creditor a judgment lien.

The final stage of bankruptcy is known as:

Under ____ proceedings the debtor files a plan for payment of creditors over five years.

The Brechers owned Contractors Source, which had a company account at Amegy Bank. Straten was a bookkeeper for Contractors. She stole money by forging check over 32 months. Amegy agreed that the checks were forgeries but argued that the terms of the account agreement said that forgeries must be reported within 30 days, so it was not responsible for most forgeries, as it had sent monthly statements that had not been checked. Under the UCC, is Amegy correct?

The law concerning liens is primarily:

Refer to Fact Pattern 12-1. Assume that once Gena defaults on her loan payments Marvin steps in and makes those payments for Gena. Once Marvin finishes paying off this debt, he may:

When a note is to be paid in regular payments but also includes a final payment more than double the regular payments, the note is called:

When filing for personal bankruptcy. A person is more likely to file for Chapter 13 rather than Chapter 7 if the debtor's income is:

If a negotiable instrument is transferred by negotiation, the transferee takes the instrument:

Under a floating lien:

If a debtor refuses to pay an unsecured creditor, and the debtor is insolvent, the unsecured creditor collects:

In the case of bankruptcy, which of the following classes of creditors have highest priority?