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

In a deed of trust arrangement,the legal title to a real property is placed with a trustee.

Which of the following real property transactions involves the use of transfer of legal title in real property to a trustee?

A writ of attachment is a prejudgment court order that permits the seizure of a debtor's property that is in the debtor's possession.

Stan bought a motorcycle for $4,000 on credit extended by the seller Cooper Motors.Stan signed a security agreement with the seller for the credit he obtained.Cooper Motors didn't file a financing statement for the credit offered.In this case,Cooper Motors automatically obtained the creditor's security interest through ________.

The term ________ refers to a written document signed by a contractor,subcontractor,laborer,or material person,waiving his or her statutory lien against real property.

Which of the following best describes writ of attachment?

The surety is primarily liable for paying the principal debtor's debt when it is due.

Which article of the Uniform Commercial Code governs secured transactions in personal property?

A ________ is a record that evidences both a monetary obligation and a security interest in specific goods and software used in the goods.

Which of the following is true of the recording statute?

Analyze the importance of the recording statute in a mortgage transaction.

A mortgage refers to an arrangement where an owner of real property borrows money from a lender and pledges the real property as collateral to secure the repayment of the loan.

A(n)________ is a judgment of a court that permits a secured lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan.

How can a creditor perfect a security interest on collateral by physical possession?

Roundwell,Inc.purchases a manufacturing plant for $15 million,by paying $5 million in cash as down payment,and borrowing the remaining $10 million from Home Providence Bank.To secure the loan,Roundwell gives the plant as collateral to Home Providence Bank.What kind of collateral arrangement is in place between Roundwell Motors and Home Providence Bank?

Trevor wants to buy a new refrigerator from the local dealer Ace Electronics for $5,000,on credit.The dealer asks for someone to guarantee the payment before selling it on credit.His sister Cindy agrees to sign the agreement as a guarantor.Which of the following is true in this case?

________ allows a mortgagor to regain real property after default and before foreclosure.

A deed of trust is the instrument that gives the debtor a security interest in the creditor's property.

Which of the following best describes repossession?

A creditor who extends credit for the purchase of a consumer good under a written security agreement does not have to file a financing statement or take possession of the goods to perfect security interest.