chptr 13-negotiable instruments and credit
A mortgagor is:
a debtor on a morgage
A mortgage will typically contain:
a description of the property and the amount of debt involved
A(n) ____ is a legally binding written order to pay a fixed sum of money that involves three parties
draft
A mechanic's lien is also called an artisan's lien.
f
A mechanic's lien is the most common lien on personal property.
f
A note involves two parties, the maker and the payee. Payment must be on demand.
f
In General Electric Business Financial Services v. Silverman, where Silverman failed to repay a loan from GE Financial after his company went bankrupt, despite having signed a guarantee to repay the loan even if the company went bankrupt, the district court:
granted the plaintiff's movement for summary judgment because the Illinois Credit Agreement Act bars affirmative defenses that rely on oral promises that contradict the written terms of the agreement
A creditor who obtains an interest in the property of a debtor without the debtor's express agreement may obtain
none
A(n) ____ is a statutory procedure under which a creditor gains the right to attach up to 25 percent of a customer's net wages to be applied to an outstanding debt.
none
Promissory notes are instruments that involve ____ parties.
none
The ____ of a note is the party who promises to pay another party.
none
The law concerning liens is primarily
none
When a note is to be paid in regular payments but also includes a final payment more than double the regular payments, the note is called:
none
When real estate is used as collateral to secure the loan, the note is a:
none
When real estate itself is used to secure a debt obligation it is evidenced by a:
none
A promise to pay a certain sum of money to another party is a type of commercial paper called a(n):
note
A check is a draft drawn on a bank and payable on demand.
t
The drawee owes money to the drawer in a negotiable instrument.
t
In a suretyship:
the credit of a third party secures a debt
A guarantor is generally the same as:
the surety
A negotiable instrument is a promise by one party to pay a undefined sum of money to another party. There are two parties: the maker and the payee. While the amount to be paid may vary, the date of payment must be set at a specific time in the future.
f
According to the Statutes of Fraud, mortgages may be either oral or in writing
f
Negotiable instruments payable "to bearer" are considered the safest form.
f
Promises to pay include drafts and checks.
f
The only property that is typically exempt from attachment is personal property worth over $1,000
f
To be ordinary holder of a negotiable instrument, the holder must give value for it, take it without knowledge that it is overdue or defective, and must take it in good faith.
f
To meet the UCC's requirements for negotiability, an instrument must be payable to a specific party.
f
When real estate is used to back up a note, it is called a collateral note
f
When the maker of a note promises to repay the note in specific installments over time, it is a balloon note.
f
A cashier's check is a form of check in which the bank is both the drawer and the drawee.
t
A negotiable instrument may be transferred in two basic ways. If the instrument is made "to the order" of the payee, the payee must (1) endorse the instrument and (2) deliver the instrument to a third party. If the instrument is made "to bearer," the party in possession of the instrument is required only to deliver it to transfer it
t
An artisan's (possessory) lien attaches to personal property.
t
If a commercial instrument is nonnegotiable, it falls under the common law, not the UCC
t
Orders to pay include drafts and checks.
t
Real estate is typically financed by borrowing money and securing the loan with a mortgage.
t
The mortgagee is the creditor who makes a mortgage.
t
The party to receive a payment from a negotiable instrument is called the payee.
t
The party who agrees to make a payment to another party, based on a document presented to it, such as a bank, is called the drawee.
t
The party who issues or creates a document that requests payment, probably from a bank, is called the drawer.
t
To meet the UCC's requirements for negotiability, an instrument must be in writing.
t
To protect the rights of the mortgagee, a mortgage should be recorded with a state official.
t
When the payee is concerned about the quality of a draft, it may be submitted to the drawee for confirmation. That is called an acceptance or bankers' acceptance
t
