Question 1

Rashi is a student at State University. To pay tuition, Rashi asks Tempo Loans Inc. for a short-term loan. The lender agrees to make a loan if Rashi will have someone who is financially responsible guarantee the loan payments. Upton, a well-known businessperson and a friend of Rashi's family, calls Tempo and agrees to pay the loan if Rashi cannot. Because of Upton's reputation, the loan is made. Rashi is making the payments, but because of illness he is unable to work for one month. He asks Tempo to extend the loan for three months. The lender agrees, raising the interest rate for the extended period. Upton is not notified of the extension (and thus does not consent to it). One month later, Rashi drops out of school. All attempts to collect the remainder of the loan from Rashi fail. Can Tempo assert a claim against Upton on the debt?

Accepted Answer

Tempo cannot hold Upton liable for two r...

Question 2

Because a mortgage involves the transfer of real property, to comply with the Statute of Frauds, it must be

Accepted Answer

A)  in good faith.
B)  recorded.
C)  written.
D)  witnessed by a disinterested third party.E) A) and B)
F) B) and D)

Question 3

Any loan for which repayment is ensured by collateral pledged by the borrower is a secured transaction .

Accepted Answer

A) True 
 B)False

Question 4

United Contractors Inc. holds a lien on Vista Estate's real property. This property can be sold to satisfy the debt if, before the sale, notice is given to

Accepted Answer

A)  Vista Estate.
B)  Vista Estate's other creditors.
C)  the general public.
D)  the state in which the property is located.E) B) and D)
F) All of the above

Question 5

The loans made by companies that provide credit cards are not backed by collateral.

Accepted Answer

A) True 
 B)False

Question 6

Because a mortgage involves a transfer of real property, it need not be in writing.

Accepted Answer

A) True 
 B)False

Question 7

To initiate a foreclosure, a lender must pay the full amount of the debt, plus any costs that have accrued.

Accepted Answer

A) True 
 B)False

Question 8

Every state allows a defaulting borrower to redeem the property before the foreclosure sale.

Accepted Answer

A) True 
 B)False

Question 9

Most creditors require a borrower to purchase mortgage insurance if the borrower makes a down payment of at least 20 percent of the purchase price.

Accepted Answer

A) True 
 B)False

Question 10

Bankruptcy statutes were not designed specifically to assist debtors in need of help.

Accepted Answer

A) True 
 B)False

Question 11

Mortgage insurance compensates a debtor for losses due to a default on a mortgage loan.

Accepted Answer

A) True 
 B)False

Question 12

Auto Sales & Finance wants to get paid for its goods and services, so it will not sell goods or lend funds unless payment is guaranteed. To obtain those goods or services, a customer or borrower might pledge

Accepted Answer

A)  allegiance.
B)  forbearance.
C)  collateral.
D)  a composition agreement.E) A) and D)
F) A) and C)

Exam 29: Creditors Rights and Remedies

Because a mortgage involves a transfer of real property, it need not be in writing.

Correct Answer
verified

United Contractors Inc. holds a lien on Vista Estate's real property. This property can be sold to satisfy the debt if, before the sale, notice is given to

Correct Answer
verified

To initiate a foreclosure, a lender must pay the full amount of the debt, plus any costs that have accrued.

Correct Answer
verified

Correct Answer
verified
Tempo cannot hold Upton liable for two r...
View Answer

Mortgage insurance compensates a debtor for losses due to a default on a mortgage loan.

Correct Answer
verified

The loans made by companies that provide credit cards are not backed by collateral.

Correct Answer
verified

Any loan for which repayment is ensured by collateral pledged by the borrower is a secured transaction .

Correct Answer
verified

Every state allows a defaulting borrower to redeem the property before the foreclosure sale.

Correct Answer
verified

Bankruptcy statutes were not designed specifically to assist debtors in need of help.

Correct Answer
verified

Because a mortgage involves the transfer of real property, to comply with the Statute of Frauds, it must be

Correct Answer
verified

Most creditors require a borrower to purchase mortgage insurance if the borrower makes a down payment of at least 20 percent of the purchase price.

Correct Answer
verified

Auto Sales & Finance wants to get paid for its goods and services, so it will not sell goods or lend funds unless payment is guaranteed. To obtain those goods or services, a customer or borrower might pledge

Correct Answer
verified

Exam 29: Creditors Rights and Remedies

Because a mortgage involves a transfer of real property, it need not be in writing.

Correct AnswerverifiedShow Answer

United Contractors Inc. holds a lien on Vista Estate's real property. This property can be sold to satisfy the debt if, before the sale, notice is given to

Correct AnswerverifiedShow Answer

To initiate a foreclosure, a lender must pay the full amount of the debt, plus any costs that have accrued.

Correct AnswerverifiedShow Answer

Correct AnswerverifiedTempo cannot hold Upton liable for two r...View AnswerShow Answer

Mortgage insurance compensates a debtor for losses due to a default on a mortgage loan.

Correct AnswerverifiedShow Answer

The loans made by companies that provide credit cards are not backed by collateral.

Correct AnswerverifiedShow Answer

Any loan for which repayment is ensured by collateral pledged by the borrower is a secured transaction .

Correct AnswerverifiedShow Answer

Every state allows a defaulting borrower to redeem the property before the foreclosure sale.

Correct AnswerverifiedShow Answer

Bankruptcy statutes were not designed specifically to assist debtors in need of help.

Correct AnswerverifiedShow Answer

Because a mortgage involves the transfer of real property, to comply with the Statute of Frauds, it must be

Correct AnswerverifiedShow Answer

Most creditors require a borrower to purchase mortgage insurance if the borrower makes a down payment of at least 20 percent of the purchase price.

Correct AnswerverifiedShow Answer

Auto Sales & Finance wants to get paid for its goods and services, so it will not sell goods or lend funds unless payment is guaranteed. To obtain those goods or services, a customer or borrower might pledge

Correct AnswerverifiedShow Answer

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
verified
Tempo cannot hold Upton liable for two r...
View Answer

Correct Answer
verified

Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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Correct Answer
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