Exam 28: Introduction to Credit and Secured Transactions

Under which of the following systems of foreclosure does the creditor have no right to recover any deficiency between the value of the property and the amount of the debt?

In the case of ________,after the foreclosure,the proceeds of the sale are applied to the payment of the mortgage debt,and any surplus is paid over to the mortgagor.

John receives certain goods from Tom.He promises to pay Tom later.This transaction is based on a(n)________.

Today,most artisans' liens:

Can a mechanic or materialman's lien be claimed if the contract is not in writing?

The notice of lien typically must be filed within what period of time?

The riskiest transaction for a creditor is a(n)________.

Nancy is the mortgagor of a property subject to a mortgage.Can she sell the property?

What Article of the UCC deals with carriers' liens and warehousemen's liens?

When a creditor keeps property in satisfaction of debt and the owner's rights are cut off,this is called ________.

The most common kind of change affecting a surety is ________.

Xavier deeds to Peter,a trustee,his property in the form of security for the loan,which is lent by Smith,the beneficiary of the trust.The nature of this transaction renders it as a deed of trust.Under these circumstances,if Xavier defaults to pay the loan,which of the following is the appropriate way in which Smith can recover his loan?

A ________ is a type of contractual security device by which real estate may be used as a security

To be relieved of obligations as surety,a compensated surety must show that:

A(n)________ is secondarily liable for the debt of the principal debtor.

Robert cosigns a note for his friend Amelia,which she has given to Credit Union to secure a loan.Suppose the note was originally for $5,000 and payable in 12 months with interest at 10 percent a year.Credit Union and Amelia later agree that Amelia will have 24 months to repay the note but that the interest will be 13 percent per year.Robert is not aware of this change of terms.In the event of Amelia defaulting on the loan,will Robert have to repay the debt?

Which of the following statements is true regarding a guarantor?

The key difference between secured and unsecured credit is that unsecured credit transactions are permissible only in a commercial context.

Payne borrowed $500 from Long Bank.At the time the loan was made to Payne,Gem orally agreed with Long that Gem would repay the loan if Payne failed to do so.Gem received no personal benefit as a result of the loan to Payne.Which of the following is most likely to be true,under the circumstances?

Which of the following is generally true about state statutes establishing mechanic's and materialman's liens?