Exam 3 CHP 13

Question 1

Something used to bargain. For example, a written promise or order to pay a certain sum of money,

Answer 1

Negotiable instruments

Question 2

Another form of commercial paper, an acknowledgment by a bank that it has received money from a customer with a promise by the bank that it will repay the money received at a date specified or, in some instances on demand.

Answer 2

Certificate of Deposit

Question 3

A promise by one party, called the maker, to pay a certain sum of money to another party, the payee.

Answer 3

Promissary note

Question 4

A draft drawn on a bank and payable on demand.

Answer 4

Check

Question 5

Issues or creates the document that requests payment, probably from a bank, but it could be from another party.

Answer 5

Drawer

Question 6

An entity that agrees to make the payment, such as the bank making a payment based on a document presented to it.

Answer 6

Drawee

Question 7

Party to receive payment, who is also the beneficiary who will be paid by the drawee.

Answer 7

Payee

Question 8

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

Answer 8

Cashier’s check

Question 9

A lien that may apply to personal property. Offers the right to continue to hold goods on which work has been done.

Answer 9

Possessory lien

Question 10

The most common lien for work performed. Must be filed 90 days after. Can place a lien on a construction or repair of a building or real property.

Answer 10

Mechanic’s lien

Question 11

How many days do you have to file a lien after the last labor or materials performed on the real estate?

Answer 11

120 days

Question 12

Has a lien life of 10 years, tied to the “thing” and follows it, even after the sale.

Answer 12

Property lien

Question 13

A ruling made by a court against a debtor in default on a secured loan, indicating that the sale of a property to pay back the loan did not cover the outstanding debt in full. It is mostly a lien placed on the debtor for further money.

Answer 13

Deficiency judgment

Question 14

A court awarded lien against the debtor’s real property.

Answer 14

Judgment lien

Question 15

The debtor who deals with mortgages.

Answer 15

Mortgagor

Question 16

The creditor who deals with mortgages.

Answer 16

Mortgagee

Question 17

A statutory procedure under which a creditor gains the right to attach up to 25% of the customer’s net wages to be applied to the outstanding debt.

Answer 17

Garnishment

Question 18

A code that states how matters are resolved when debts are greater than assets available.

Answer 18

Bankruptcy code

Question 19

The chapter of bankruptcy that deals with liquidation by the discharge of most debts after-sale and distribution of the proceeds on the debtor’s non-exempt assets to the creditors.

Answer 19

Chapter 7 bankruptcy

Question 20

Document for an application involves:

1. List of creditors
2. Source, amount, and frequency of debtors income
3. List of debtors property
4. List of monthly expenses.

Answer 20

Petition filed for bankruptcy

Question 21

What is the priority of claims to be paid? (1,2,3,8)

Answer 21

1. Secured creditors
2. Costs of preserving and administering the debtors estate
3. Unpaid wage claims
4. General (unsecured) creditors who can file proof of a claim.

Question 22

Debts of which cannot ask for more money after already receiving the most offered from bankruptcy.

Answer 22

Discharged debts

Question 23

A chapter of bankruptcy that applies to businesses that wish to remain in operation and not be liquidated.

Answer 23

Chapter 11 bankruptcy

Question 24

The bankruptcy chapter considered the wage earners plan. Available only for individuals. Debtor retains their property and shares administration of the bankrupt estate with a court-appointed trustee.

Answer 24

Chapter 13 bankruptcy

Question 25

What is the highest percentage that can be garnished?

Answer 25

25%

Question 26

An enforceable legal claim or lien on collateral that has been pledged, usually to obtain a loan. Gives the lender the right to repossess all or part of the property if the borrower stops making loan payments. In this case, land.

Answer 26

A security interest in land

Question 27

A type of lien that permits an artisan to retain possession of a piece of work until it has been paid for.

Answer 27

Artisan’s lien