Chapter 8 Flashcards
What is a surety? and how does it compare to Guarantor?
directly liable. Guarantor is secondary liable
Whats a Gratuitous surety and Compensated Surety?
- not compensated. if there are any changes to the original agreement, the surety is released. Not bonded if the loan was already made
- paid surety. the only way it can be released is if its material. doesnt matter when the loan was made. still liable
Defenses of surety
CPRS Creditor acted in bad faith Payment and tender of pmt Release debtor Surety lacks capacity or is bankrupt
Whats the interesting difference of an agent?
Agents do not have to have capacity and minors can be agents
What are the 3 situation where the principle is now liable to the 3rd party:
- actual authority - power and right
- apparent authority - power but no right
- ratification - power but no right
Which of the following is correct regarding the Bank Secrecy Act of 1970, as amended?
a. it generally requires records to be kept for three years
b. it applies to bank only
c. it generally requires the filing of a currency transaction report for any deposit, withdrawal or exchange of currency of $5,000 or more
d. it requires private citizens to file reports in some cases
d. it requires private citizens to file reports in some cases
If a financial institution receives a deposit of $20,000 from a customer for whom the bank has not filed a designation of exempt person form, within how many days must the bank file a currency transaction report if the bank does not file electronically?
15 days
what does “per se” mean? and whats Rule of reason usually restraint?
inherently illegal and without legal justification (most horizontal restraints) Rule of reason usually restraint vertical
Under the Volker Rule contained within Title VI of Dodd-Frank (regarding banking reform) what is the highest percentage of ownership that a banking entity may take in a hedge fund or private equity fund?
3%
