Chapter 13

A check must have ____ as it's drawee

A bank

A commercial instrument where one party has a legal obligation to pay another party a certain sum of money and involves a maker and a payee only is called

A note

If a negotiable instrument is ____ the assignee had the same contract rights and responsibilities as the assignor

Assigned

If a debtor is insolvent then unsecured creditor

Cannot collect the bill

A _____ is a form of check in which the bank is both the drawer and drawee

Cashiers check

In most chapter 11 bankruptcies the _____ operated the reorganized business

Debtor

The _____ agrees to make the payment such as the bank making a payment based on a document presented to it

Drawee

The ____\\ issues or created the document that request payment probably from a bank but it could be from another party

Drawer

The framers of the constitution specifically made bankruptcy a matter of

Federal law

An advantage of a well planned chapter 11 bankruptcy compared to liquidation include

Fewer legal fees

Under the UCC ____ includes goods held for sale as well as raw materials

Inventory

A creditor is a person or business who:

Lends money to someone else, allows serviced or goods to be purchased by someone else

Filling for bankruptcy under chapter 7 of the bankruptcy code result in ______ of debts

Liquidation

The _____ of a note is the party who promises to pay another party

Maker

Bankruptcy

May be forced upon a debtor

A check must be paid

On demand

A _____ offers the right to continue to hold goods on which work has been done or for which materials have been supplied until the customer pays

Possessory lien

filling for bankruptcy under chapter 13 of the bankruptcy code results in ___ of debts

Reorganization

A bank is the maker of certificate of deposit

True

A bankruptcy is a matter of credit history record for ten years.

True

A secured creditor is one is able to take a non paying customers property to satisfy the customers debt

True

bankruptcy proceedings may be voluntary or involuntary

True

16-year-old Green bought a car that he later wanted to return for a full refund. If the dealer refuses a court is likely to hold that:

as a minor Green can disaffirm the contract and be given a refund, less the value of the benefits received from the use of the car

A form of check in which the bank is both the drawer and the drawee is called a:

cashier's check

The final stage of bankruptcy is known as:

discharge in bankruptcy

Bankruptcy law

is federal statutory law, primarily the Bankruptcy Code

Under a floating lien

new inventory is used to replace collateral that is sold

A guarantor is generally the same as:

surety

Bankruptcy discharge is

the final stage of the bankruptcy proceeding for individuals

Chapter 21 bankruptcy's which are filled by businesses

Allow a business to keep operating under reorganization of its activities and debts

A "draft drawn on a bank and payable on demand" is a

Check

The most commonly used form of draft is a

Chrck

A ____ is one who lends money to or allows goods or services to be purchased on credit by another party the debtor

Creditor

A _____ required immediate payment by the drawer to the payee

Sight draft

In a surety ship

The credit if a third party secures a debt

Capacity refers to

The debtors abailty to pay

Capital refers to

The debtors financial confition

A creditor who obtains an interest in the property of a debtor without the debtor's express agreement may obtain:

lien

Billy wants to borrow $10,000 to start a male belly dancing business. Creditors are not anxious to lend him the funds. Billy convinces Gary to back-up his credit. Gary is:

surety