Exam 28: Introduction to Credit and Secured Transactions

George has signed a promissory note,and Huber,Nick,and Jeffery are cosureties of their friend George.When George defaults,Jeffery pays the whole obligation.Jeffery is entitled to collect one third from both Nick and Huber.This is known as the:

A(n)________ is an installment contract for the purchase of land in which a buyer agrees to pay the purchase price over time and assumes many responsibilities of the owner,but the seller keeps legal title and does not turn over the deed until the purchase price is paid.

When a rug repairer fixes a damaged rug and keeps the rug until a reasonable charge for rug repairs has been made,the rug repairer has this right because of a ________.

Explain the difference between an accommodation surety and a compensated surety.

Who are party to a deed of trust?

Miguel has been complaining to his neighbor Robert that his lawn mower is broken.Robert fixes the lawn mower for Miguel and asks Miguel for $50 for the parts he used to make the repairs.Miguel refuses to pay and Robert takes the lawn mower,threatening not to return it until Miguel pays.Is Miguel acting legally?

A party who borrows money to buy a home and signs an agreement giving the bank the right to repossess the home in case of default is called a:

Jones hired Smith,a general contractor,to build a garage as an addition to Jones' home,located in Pennsylvania.Smith hired Adam to do the roofing work on this garage.All the work was done satisfactorily,and at the completion of the work,Jones paid Smith the agreed price.However,Smith never paid Adam for his work.Three weeks after Adam finished his work,he filed a mechanics' lien against the property and demanded that Jones pay him for his work.Which of the following is most correct under the Pennsylvania system?

A subcontractor is a person who contracts with the owner of a property to build or remodel.

Under the Pennsylvania system,the general contractor's failure to perform his contract or his abandonment of the work has a direct effect on the lien rights of subcontractors and materialmen.

Why is a guaranty contract similar to a suretyship contract?

A surety has a right of ________,which is the right of the surety or guarantor to require the debtor to make good on his commitment to the creditor when he (1)is able to do so and (2)does not have a valid defense against payment.

Tina cosigns a promissory note at Globe Bank for $500 for her friend Tom.Tom defaults on the loan,and Globe Bank collects $500 from Tina.Tina then collects $500 from Tom.Tina could collect money from Tom because of her right of ________.

Because the real estate mortgage conveys an interest in real property,it must be executed with the same formality as a deed.

Submaterialmen are entitled to a lien only when:

What is an equity of redemption?

An artisan who makes an improvement on a personal property is given a ________ on it until he is paid.

A(n)________ surety is a person who acts as a surety without compensation,such as a friend who cosigns a note as a favor.

If a debtor defaults and the debtor's surety satisfies the obligation,the surety acquires the right of:

When a borrower deeds property that is to be put up as security to a trustee,this is called a ________.