Commercial Law 2 L303 Ch 25- 31)- IUS Spring 2020

Ed files a petition in bankruptcy. The initial proceeding on this petition will be in​

a federal bankruptcy

Fiscal Credit Corporation asks Global Industries, Inc., to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is​

a floating lien

Dan signs a check payable to Ed, who indorses the back, gives it to Foodway Market, and receives cash. The transfer of the check from Dan to Ed is​

a negotiation

Elena, an employee of Builders, Inc., forges the signature of Carly, Builders's president, on a company check and cashes it at Delta Bank. Carly would ratify Elena's actions by​

entering into a repayment agreement with Elena

Edgar refuses to pay Delia $500 for the cost to repair Edgar's washing machine and dryer, which Delia still possesses. Delia has a lien on the machines, which will terminate​

if she voluntarily surrenders possession

Alicia wants to impress her new in-laws by making a large donation to charity. She signs an instrument payable to the order of The Arzana Association for the Preservation of American Heritage, knowing full well there is no such organization. The instrument

is neither a bearer nor an order instrument.

Nell's debt to Olsen is past due. Olsen obtains an order of garnishment to require Nell's employer Pro Transmission Service, Inc., to pay part of Nell's paycheck to Olsen. The law​

limits the amount that can be taken from Nell's take-home pay.​

George borrows funds from Hometown Credit Union (HCU) to buy real property. George signs a written instrument that gives HCU an interest in, or lien on, the property as security for the debt's payment. This is​

mortgage

Carly files a petition in bankruptcy. One of the goals of bankruptcy law with respect to a debtor is to​

provide a fresh start, free from creditors' claims

Renee's voluntary petition for bankruptcy is found to be proper. The order for relief is effective as soon as​

she files the petition

Bagels Café defaults on debts to Country Bank and Hillside Loan Company. Country Bank perfected its security interest before Hillside. The bank takes possession of the collateral in which it has a security interest. On a sale of the collateral, the proceeds will be applied first to​

the balance of the debtor's debt to Country Bank

Drew signs a check "pay to the order of Eastern State University" drawn on Drew's account in Fidelity Bank to pay her tuition. Drew is​

the drawer

Fact Pattern 25-3 To borrow the funds to pay tuition at Alpha College, Bea signs an instrument unconditionally promising to pay to "Country Loan Corporation" $7,500 with interest in installments with the final payment due June 1, 2030. Refer to Fact Pattern 25-3. With respect to this instrument, Bea is

the maker

Credit Financing, Inc., and Equity Lending Company are secured parties with security interests in property owned by Fleet Shipping Corporation. Priority between these security interests is generally determined by​

the time of perfection or attachment

Milos files a petition in bankruptcy. His dischargeable debts include​

unsecured credit-card debt

Curt writes a check on his account at North Bank to Mandy, a famous singer. The person claiming to be Mandy is an imposter, however, named Debra. Debra indorses the check to Portions, a casino, for which North Bank cashes it. Ultimately, the loss will most likely fall on​

Curt

Darby writes a check to Education Loan Management, Inc., that is drawn on Darby's account at Federal Bank. If the bank does not accept the check, liability for its amount is on​

Darby

Fiona writes a check "pay to the order of Gerri" drawn on Fiona's account at Home State Bank. Gerri presents the check for payment to Home State, which accepts it. Primarily liable on the check is​

Home State Bank

Portia owes Bjorn $500 on their roof repair contract, but refuses to pay. To collect, Bjorn files a mechanic's lien. Under a mechanic's lien, security for the debt is represented by​

Portia's real estate

To borrow the money to buy a car, Megan signs a note "payable to the order of Purchase Financing." Olaf cosigns the note to guarantee the repayment of the loan. Olaf's liability on this note is​

Primary

Nora files a petition in bankruptcy. She turns her assets over to O'Brien, who sells them and then distributes the proceeds to Nora's creditors. O'Brien is​

a bankruptcy trustee

Harold files a bankruptcy petition. The resulting automatic stay will apply to Harold's payments for​

a car

Ken's Auto Sales borrows money from Lenders Finance Corporation under a security agreement. With the money, Ken's buys six Mazda Miatas. The vehicles are​

after-acquired property

Vicenzo, in good faith and for value, gets from Wren a check "payable to the order of bearer." Vicenzo does not know that Wren stole the check. Vicenzo is​

an HDC

Loni delivers her Mazda to be repaired at Nile's Body Shop. Loni agrees to pay cash. Nile performs, but Loni does not pay. Nile tells Loni that he will keep the car until she pays. This is​

an artisan's lien

Connie transfers a note by signing it and delivering it to Dana. Dana is​

an indorsee

Kris transfers a note, on which Liu is the maker, to Mia, who takes it for value and in good faith. Mia knows that Kris breached the contract underlying the note, giving Liu a defense against payment. With respect to this note, Mia is​

an ordinary holder

Builders Exchange, Inc., issues an instrument in favor of Custom Construction Company. For the instrument to be negotiable, it must

be payable on demand or at a definite time.

Rod negotiates a bearer instrument to Shauna by​

delivery alone

Laura writes on a piece of paper, "I owe you $400," signs it, and gives it to Max. This instrument is

not negotiable, because it does not include an express promise to pay.