Credit analysis

Question 1

promissory note

Answer 1

It is a promise to pay.. financial document(commercial loan note) that contains a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.A promissory note typically contains all the terms pertaining to the indebtedness by the issuer or maker to the note’s payee, such as the amount, interest rate, maturity date, date and place of issuance, and issuer’s signature.

Question 2

affidavit of identity

Answer 2

Courts, banks and savings institutions often require you to verify your signature or identity for certain transactions or signing documents. An Affidavit of Identity can be used to verify your identity or signature. In the Affidavit you provide your personal and identifiable information including legal name, date of birth and home address. You’ll be asked to swear that the information given is true and correct. You’ll also need to have the Affidavit witnessed, signed and sealed by a notary public.

Question 3

collateral/pledge

Answer 3

In lending agreements, collateral is a borrower’s pledge of specific property to a lender, to secure repayment of a loan.[1][2] The collateral serves as protection for a lender against a borrower’s default—that is, any borrower failing to pay the principal and interest under the terms of a loan obligation. If a borrower does default on a loan (due to insolvency or other event), that borrower forfeits (gives up) the property pledged as collateral, with the lender then becoming the owner of the collateral.

pledge is a bailment that conveys possessory title to property owned by a debtor (the pledgor) to a creditor (the pledgee) to secure repayment for some debt or obligation and to the mutual benefit of both parties.[1][2] The term is also used to denote the property which constitutes the security. A pledge is type of security interest.

Question 4

deed of trust

Answer 4

A document that embodies the agreement between a lender and a borrower to transfer an interest in the borrower’s land to a neutral third party, a trustee, to secure the payment of a debt by the borrower.

A deed of trust is an arrangement among three parties: the borrower, the lender, and an impartial trustee. In exchange for a loan of money from the lender, the borrower places legal title to real property in the hands of the trustee who holds it for the benefit of the lender, named in the deed as the beneficiary. The borrower retains equitable title to, and possession of, the property.

The terms of the deed provide that the transfer of legal title to the trustee will be void on the timely payment of the debt. If the borrower defaults in the payment of the debt, the trustee is empowered by the deed to sell the property and pay the lender the proceeds to satisfy the debt. Any surplus will be returned to the borrower.

Question 5

miscellaneous

Answer 5

what the loan was for