Exam 28: Introduction to Credit and Secured Transactions

Under the _____ system,the subcontractors or materialmen have direct liens and are entitled to liens for the value of labor and materials furnished,irrespective of the amount due from the owner to the contractor.

Article 9 of the Uniform Commercial Code deals with provisions regarding security interests involved in personal property.

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

Jones hired Smith,a general contractor,to build a garage as an addition to Jones' home.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 pays him for his work.Which of the following is most correct?

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.

A "_____" is a security interest in real property or a deed to real property that is given by the owner as security for a debt owed to the creditor.

A mortgage is a security interest in real property.

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

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