June 2nd Quiz

Question 1

An involuntary petition in bankruptcy, if not contested will automatically result in…

Answer 1

An order of relief by bankruptcy court

Question 2

Only if the involuntary petition in bankruptcy is contested will the creditors be required to prove either that…2

Answer 2

1 debtor not paying debts as they mature or

2 during 120 days preceding the filing of petition, custodian was
Appointed or took possession of debtor’s property

Question 3

The Statute of Frauds requires that contracts that cannot be performed within one year be…

Answer 3

Evidenced by writing

Question 4

Under the statute of frauds, the one year period for a contract begins…

Answer 4

From the date the contract is formed

Question 5

A financing statement does not include…

Answer 5

The amount of obligation secured

Question 6

A financing statement will include…

Answer 6

The address of the debtor

Question 7

If a company has a mortgage and takes out a second mortgage. If the company defaults, who has priority?

2) what does this mean?

Answer 7

First mortgagee has priority

2) first mortgagee must be paid in full before second mortgagee
Can be paid