Exam 20: Mortgages and Security Interests

A(n) ____________ occurs when the ____________.

Generally, a security interest is perfected when the:

Only personal property can be used to secure a debt.

When a borrower does not qualify for a conventional mortgage, he might ask for and receive a subprime loan.

According to the UCC, conflicting secured interests are generally resolved:

If a mortgage is not recorded and a later mortgage is given on the same property, the new mortgage is superior to the first.

A security agreement can either be oral or in writing.

Fred Farmer, the mortgagor, is entitled to a jury trial when Big Bank attempts foreclosure on his farm.

A(n) ____________ agreement is a written contract which identifies the secured goods and is signed by the debtor.

In which type of mortgage is the loan repaid when the borrower dies or the property is sold?

A deed of trust is requires court action to sell property upon default of the debtor.

The Emergency Economic Stabilization Act (ESSA) of 2008 did not have the authority to limit executive compensation and the "golden parachutes" of CEOs of institutions who were granted TARP bailout funds.

By taking a graduated-payment mortgage, Jake will pay a fixed interest rate and make increased monthly payments over the term of the loan.

A(n) ____________ loan is one in which creditors have something of value, usually called ____________, which they can ____________ if the debtor ____________.

Iris is looking for a short-term mortgage that will allow her to pay fixed payments at a relatively low fixed interest rate during the life of the mortgage and one large payment at the end of the term. What kind of mortgage should Iris take?

A security interest is automatically perfected when the secured party has a legally enforceable right to take the property and sell it to satisfy the debt.

After repossessing the goods, the secured party (the creditor) may sell them at a public auction or private sale.

Daisy attempts to put up Harry's property for a loan without Harry's knowledge or consent. Daisy has attached, but not perfected, Harry's property.

Holly bought a house for $200,000. She put down $40,000 in cash, and took out a $160,000 loan from the Midland Bank to cover the rest of the cost. However, Holly found that she could not make her mortgage payments. Midland Bank foreclosed on the mortgage, sold the house for $150,000, and told Holly that she was liable for the $10,000 difference between what she paid for it and what the bank sold it for. Did Midland act within its rights? Explain.

The funds of the Troubled Asset Relief Program (TARP) are managed and allocated by the President of the United States.