Exam 13: Negotiable Instruments, Credit, and Bankruptcy

A floating lien must be renewed each time a customer purchases more goods on credit to add to the account.

According to the Statutes of Fraud, mortgages may be either oral or in writing.

Nonnegotiable instruments are governed by:

The difference between the value of a business as a going concern compared with what is collected from selling the assets of the company is known as a:

Under a floating lien:

The security interest in a lien is usually nonconsensual (not by consent of the debtor).

When a payee wants to get cash immediately for a draft he can sell it to another party, but interest must be paid. This is called:

In a contract for suretyship, the borrower or debtor is referred to as the:

If a customer does not pay for work done to personal property, a creditor may force the sale of the property to satisfy the debt.

A mortgage will typically contain:

A(n) ____ functions as a substitute for cash.

The law of negotiable instruments has its origins in:

UCC Article 3 governs most mortgages, although a few states have not adopted that article and rely on common law.

Historically, promises to pay a debt owed were allowed to be assigned to a third party, but were usually done so at a discount.

A(n) ____ functions as a substitute for cash.

A business is a ____when it has the ability to take some of the nonpaying customers' property to satisfy the debt.

The ____ issues or creates the document that requests payment, probably from a bank, but it could be from another party.

Collateral is the one term in a debt instrument that always must be specified.

A secured creditor is one who:

Bankruptcy in Chapter 13 is usually to be completed in five years.