Chapter 7: Unit 2: Using the Promissory Note in Georgia

fact

A note doesn't need a security instrument to be a valid contract. True or False ?

the borrower and the lender

Which parties must be identified on the promissory note?

security deed

Which real estate finance instrument may include the pledging of collateral and the release of that collateral in the same document?

the obligee

Who holds the promissory note while it's being repaid?

promissory note

A ____________ _______ attached to a security instrument describes the loan amount and terms, and references the security instrument.

fact

The maker gives the note to the payee to hold. True or False?

security instruments

The mortgage, security deed, and the deed of trust are ______ that pledge property as collateral for a loan.

fiction

The note must be recorded in county records. True or False?

the note is endorsed and the mortgage is assigned

When a mortgage is sold, how is the transfer made?

endorsement of the note

When a promissory note is sold, how is ownership transferred?

fact

When the debt is paid in full, the payee signs the note and returns it to the maker. True or False?

security deed

The three types of finance instruments that can be used when financing a real estate purchase are the note with mortgage, note with deed of trust, and note with ______.

A mortgage, a deed of trust, and a security deed

what are all types of security instruments that pledge property as collateral for a loan.

mortgage

Financing for a real estate transaction can use a note with a ______, a note with a deed of trust, or, in Georgia, a note with a security deed.