Exam 13: Negotiable Instruments, Credit, and Bankruptcy

An open account is the least common form of business credit account.

Bankruptcy:

A bill of exchange is a draft that guarantees payment for goods in international trade.

The one who agreed to make a payment, such as a bank making a payment based on a document presented to it is:

____ specify payment to be made in the future, such as 60 days from the date of the writing of the draft.

Collateral refers to:

The surplus that the creditors hope to capture by allowing the business to remain in operation so that they have a greater chance of full repayment is called:

Once bankruptcy proceedings are finished, the consumer's credit record:

A creditor may be secured by operation of the law only, all other means of securing loans are not enforceable.

A mortgagor is:

Under the UCC, a security interest in consumer goods perfects automatically when the consumer signs the agreement.

To meet the UCC's requirements for negotiability, an instrument must be in writing.

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

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

When real estate is used as collateral to secure the loan, the note is a: