R8 - Suretyship and Creditor's Rights

Question 1

A mechanic’s lien arises from improvements made on

Answer 1

Real Property

Question 2

An artisan’s lien arises from improvements made on

Answer 2

Personal property

Question 3

Subrogation is:

Answer 3

The right a surety has by which the surety succeeds to the creditor’s rights against the principal when the surety pays the principal’s obligations.

Question 4

A composition of creditors is

Answer 4

An agreement between a debtor and at least two creditors that the creditors will take less than full payment to discharge the debts owed by the debtor to the creditors who participate in the composition agreement.

Question 5

A writ of attachment is

Answer 5

An order by the court to a sheriff to seize a person’s property.

Question 6

Which bonds are an obligation of a surety?

Answer 6

Official bonds. Many states require public officials to obtain bonds from a surety for faithful performance of their duties. Such bonds obligate a surety for all losses that the public official causes by negligence or nonperformance of required duties.