Exam 39: Security Devices

Which of the following best describes the right to indemnity?

A party who has primary liability is the creditor.

A party who undertakes to be responsible for another is a _____.

_____ are items used or bought primarily for personal, family, or household purposes.

A guarantor's right to have a creditor compel the payment of debt is known as the right of _____.

Discharge of a surety occurs:

A buyer has the right to transfer the collateral and require a determination of the amount owed.

Articles purchased with the intention of reselling or leasing them are called consumer goods.

A security agreement contains the terms of payment and names of the parties.

A contract of suretyship is an agreement whereby one party promises to be responsible for the debt of another.

Which of the following is true of a financial statement?

Which of the following is a requirement of a security agreement?

When sellers retain the right to repossess the items sold if the buyers breach the sales contracts, the transactions are unsecured credit sales.

A surety or guarantor may call on the creditor to proceed to compel the payment of the debt.

If a creditor extends the time of the debt without the consent of the surety, for a consideration, the surety is discharged from further liability.

Suretyship given for someone who handles another's money is known as _____.

When the rights of a seller to the collateral are inferior to those of third persons, the seller has a perfected security interest.

Explain the right of subrogation of a surety.

If a creditor damages collateral security given to secure a debt, surety is not discharged.

A contract of guaranty must be in writing.