Exam 13: Negotiable Instruments, Credit, and Bankruptcy

When a creditor extends credit to a debtor, to protect itself, the creditor should:

Before a person may file for bankruptcy the person must:

In a bankruptcy proceeding all creditors must be paid an equal share of the assets available, according to the amount of debt owed.

Which of the following are sources of credit information:

Credit terms must include:

In case a borrower defaults on a mortgage, the mortgagee has an absolute right to dispose of the property in any manner desired.

Capacity refers to:

One of the most common defenses of sureties is bankruptcy.

If a commercial instrument is nonnegotiable, it falls under the common law, not the UCC.

A creditor is one who lends money to, or allows goods or services to be purchased on credit by, another party, the:

The framers of the Constitution specifically made bankruptcy a matter of:

Refer to Fact Pattern 12-1. Assuming that Gena pledges not only her pasta makers, but also her 1/2 acre piece of property in Montclair, NJ. Once she defaults on her loan payments to First Fidelity the bank may:

A negotiable instrument is a promise by one party to pay a undefined sum of money to another party. There are two parties: the maker and the payee. While the amount to be paid may vary, the date of payment must be set at a specific time in the future.

Banks provide credit information about customers, but by law it may only be about their checking accounts.

TP sells franchises in the Old Fast Food chain. TP sells a franchise to Choi for $100,000 by cashier's check. Choi then hears that TP is going out of business and tries to stop payment on the check. TP has already transferred the money to a third party who meets the UCC's requirements for a holder in due course. The bank paid that third party. TP declares it is out of business. In a subsequent lawsuit:

The agreement providing security in real property is a(n):

Debt collections may be done by:

When a business lends another business money, it should perfect its security interest by:

A creditor who obtains an interest in the property of a debtor without the debtor's express agreement may obtain:

When the maker of a note promises to repay the note at specific dates over time, it is called an installment note.