Exam 13: Negotiable Instruments, Credit, and Bankruptcy

The financing of commercial sales of goods is governed by:

Most large certificates of deposit are:

In an involuntary bankruptcy, the trustee files the petition for bankruptcy.

Which of the following requirements is necessary to be a holder in due course:

Filing for bankruptcy under Chapter 7 of the bankruptcy code results in ____ of debts.

Negotiable instruments are not:

A customer who is insolvent is able to make only partial payments on credit accounts.

A general creditor usually collects on a debt owed by an insolvent debtor by taking collateral from the debtor to sell for debt payment.

In a suretyship:

Refer to Fact Pattern 12-1. Each month Gena is supposed to pay a set amount of money to Fidelity in repayment of her loan. This may be described as what type of credit account?

Besides being written, an unconditional order or promise to pay, must be made out for a definite sum of money. To be negotiable under Article 3 of the UCC, an instrument also must meet which of the following requirements it:

The party who issues or creates a document that requests payment, probably from a bank, is called the drawer.

Under the UCC, a secured party may repossess property only upon receipt of a warrant.

The party who borrows money (gets credit) is called the creditor.

The most common use of drafts is to:

Hill owned a roofing business that had an account at Lowe's to buy supplies. He sold the business to his employees who had used the account. When he sold the business, he asked a person at Lowe's to close the account. The account documents stated that to close the account, Hill must contact Lowe's headquarters in writing, but he did not. His former employees ran up a bill on the account. Lowe's sued Hill for the balance due as the former employees were bankrupt. Most likely, the court would hold that Lowe's could:

Most creditors seek information about debtors from:

If you sign a personal promissory note to cover debts owed by your business and the business fails, you will be held personally liable on the debt.

The ____ in a bankruptcy proceeding must assure that no creditor has improved its relative position.

The one who issues or creates the document that requests payment, probably from a bank, is called: