Chapters 26 - 28

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false.

1)  A debtor who is judgment-proof does not have a legal obligation for the payment of debts.

2)  If the debtor fails to make payments when due in a secured transaction, the creditor may repossess the collateral to recover the outstanding amount of the debt.

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.

3)  The legal right in the debtor's property granted by the debtor to a creditor is known as:

A) a security interest.

B) collateral.

C) a garnishment.

D) a right of redemption.

E) a financing statement.

4)  When a debtor fails to pay a debt, and the value of the collateral is less than the full amount of the debt, which of the following is generally true?

A) The creditor can obtain a deficiency judgment against the debtor for the amount of the debt that was not satisfied from the collateral.

B) The creditor must record its security interest before proceeding further.

C) The creditor must absorb the remaining loss and has no further remedy.

D) The creditor must file a bankruptcy proceeding against the debtor in order to obtain further relief.

5)  Which of the following is not personal property?

A) jewelry

B) stock certificates

C) condominiums

D) copyrights

E) motor vehicles

TRUE/FALSE.  Write 'T' if the statement is true and 'F' if the statement is false.

1)  FALSE

2)  TRUE

MULTIPLE CHOICE.  Choose the one alternative that best completes the statement or answers the question.

3)  A

4)  A

5)  C