Exam 23: Credit, Real Property Financing, and Secured Transactions

A(n)________ is an instrument that evidences a borrower's debt to the lender for a real property.

Who is the beneficiary in a deed of trust transaction?

________ is an interest a creditor automatically obtains when he or she extends credit to a consumer to purchase consumer goods.

An improperly recorded document is effective against other mortgagees or lienholders on the same property who have no notice of the prior mortgages.

A ________ is a written document signed by a debtor that creates a security interest in personal property.

A business purchases an airplane from an airplane manufacturer.The business obtains a loan from a bank to purchase the airplane.The bank obtains a security interest in the airplane.The airplane manufacturer is paid for the airplane from of the proceeds of the loan.This is an example of a ________ transaction.

The term ________ refers to a secured creditor's repossession of collateral upon a debtor's default and selling,leasing,or otherwise disposing of it in a commercially reasonable manner.

Antideficiency statutes are used to prohibit deficiency judgments on second mortgages.

When a debtor defaults on a secured real estate mortgage,it triggers a legal court action for foreclosure of that property.

To which of the following type of mortgages does the antideficiency statute apply?

A ________ is an instrument that gives a creditor a security interest in the debtor's real property that is pledged as collateral for a loan.

Alan won a $50,000 judgment against Henderson.However,Henderson refused to pay the amount to Alan.To counter Henderson,Alan obtained a postjudgment writ from the court whereby the court directed the town sheriff to seize Henderson's automobile and other property and have them publicly auctioned off to cover the amount owed to Alan.Which of the following writs did Alan motion the court to seize Henderson's property?

What of the following is true about perfection by possession of collateral?

Kimberly owns a company that sells industrial tools.She borrows $50,000 from a bank with her company's accounts receivable as the collateral.This means that if Kimberly defaults on the loan,the bank can reclaim the borrowed amount from her company's accounts receivable.This is an example of ________.

Foreclosure sale is initiated when a debtor successfully repays the mortgage amount.

Travis mortgages his house to a financing firm called Smith & Sons for $200,000.Smith & Sons fails to record the transaction in the local county office.However,it files a financing statement to perfect its security interest on collateral.Without revealing the details of his prior mortgage,Travis uses the same house to secure an additional $150,000 from Cooper Associates one year later.Cooper Associates too files a financing statement but it is a year later than that of Smith & Sons' financing statement.In this case,which creditor has the priority to claim interest in the collateral?

After-acquired property refers to a property that a debtor acquires after a security agreement is executed.

________ is a process that establishes the right of a secured creditor against other creditors who claim an interest in the collateral.

A ________ has an ownership or other interest in the collateral and owes payment of a secured obligation.

Wesley buys a house for $1,000,000.He puts $400,000 down,and borrows $600,000 from a bank against the property as collateral.When Wesley defaults,the bank decides to foreclose the property.However,the property depreciated significantly and it is worth is only $500,000 now.The bank brings a legal action against Wesley to claim the $100,000 shortage.Which of the following court doctrines can help the bank recover the shortage from Wesley?