Exam 24: Other Creditors Remedies and Suretyship

Raoul is a surety for Suzu's loan from Turnkey Credit, Inc. Raoul's right to "step into the shoes" of Turnkey, after paying Suzu's debt, and ex?er?cise any of the Turnkey's rights against Suzu is the right of

Fact Pattern 24-1 Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application. -Refer to Fact Pattern 24-1. If Tina signs the application but fails to con?di?tion her signature on Petro's agreement to pursue its legal remedies against Slick before looking to her, then Tina is

An attachment is a court-ordered seizure and taking into custody of prop?erty before a judgment is obtained on a past-due debt.

Drew and Earl are brothers. They agree to act as guarantors on a loan made by their sister, Flo. Flo defaults on the payments and Drew re?fuses to pay. Earl pays the debt. Earl can recover from

When a surety or guarantor pays a debt owed to a creditor, he or she acquires any right that the creditor had against the debtor.

To use attachment as a remedy, a creditor must have an enforceable right to payment of the debt.

A guarantor is secondarily liable on an obliga?tion.

Federal law governs garnishment actions.

Francis performs a contract with Genie to add a garage to Genie's property, but Genie does not pay. Francis can file a lien on Genie's property if, from the last date labor or materials were provided, he acts

A mechanic's lien can be enforced to obtain payment for work that adds value to real property.

Dana defaults on a debt to Rachel. Rachel will NOT be able to recover the debt from

Kendall performs a contract with Lainie to add a covered porch and a pool deck to Lainie's house, but Lainie does not pay. Kendall notifies Lainie that the property will be sold to satisfy the debt. This is

A writ of execution applies to a debtor's nonexempt real or personal property wherever located.

An artisan's lien is a security device created at statutory law through which a creditor can recover payment for labor and materials used to increase the value of real property.

A surety cannot assert the principal debtor's bankruptcy as a defense to avoid liability on the debtor's obligation.

A creditor must exhaust all legal remedies against the principal debtor before holding the surety responsible for payment.

Ronald's debt to Greg is past due. Ronald obtains a judgment against Greg to collect the debt, but Greg will not pay. Ronald requests a writ of execution. The property that is seized under the writ of execution must be

A surety can never assert fraud as a defense.

Portia owes Bon $500 on their roof repair contract, but refuses to pay. To collect, Bon files a me?chanic's lien. Under a mechanic's lien, security for the debt is repre?sented by

A guarantor can be required to pay an obligation only after the principal debtor defaults.