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Unformatted text preview: CH16 Mechanic lean- 20 day preliminary notice. 5 matching terms, - mortgagee and mortgagor, t rustee, t rustor, and benifisnary Trustee - 3 rd party giving the power to sell. Deficiency judgment- go to court for a difference, if the loan was used to purchase the property, and the lender sold it for less, cannot get a deficiency judgment. Surety – if the borrower doesn’t pay, it directly goes to the debtor. Guarantor - Secondary liable, guarantee on debt to be paid. Subrogation- surety pays off the debtor, Right of contribution- if only 1 surety pays off, the surety can go on another for contribution. Homestead exemption – resident 50k, 65 or older/disable 150k. protects equity/interest in your home. (equity = difference the value and the debt) If more than 4, Must disclose the t rue cost of borrowing. Annual rate – interest rate + finical rate. Usury – to place statuary ceilings on interest rates and other charges. CH17 reorganizing. Sole proprietorships – easy to form, personal liability, Partnership – they don’t need to be in writing. Joint liability CH19 Corporations Closed corporation – small corp. closely held. Rosily v smith – 4 share holder, 2 of them were young. If any were to died, other can buy at predetermine price, estate has to sell. \ Cases 16.5 – In re Seixas – when go to bankruptcy the bank debt can be discharges. 17.1 – Tarnavsky v. Tarnavsky – morris and TR are partners, have to pay him out. 17.2 – creel v lilly – when a partnership died, the partnership must wind up the partnership and pay off. 17.4 – camp creek hospitality inns. (3types of franchise = Chain style, distributorship, manufacture. ) franchisee in Sheraton, competed in their own franchise. 17.5 Miller v. D.F. Zee – Sued Danny for sexual harassment, know about it but didn’t stop the franchisee. 19.1 Crowder Construction Co. v. Kiser - Kiser went to work for company, he lose for no evident to be the reason. De Jure and De Facto Corp. de facto = exist be has not meet all the requirement. Disregarding the Corporate Entity – unregister is still liable Rights of director – right of participation and inspection, compensation and indemnification. Most of important is participation, least is compensation. (not a automatic right) Liability of directors and officers – Role of shareholder – right to vote on different issues. Has to be a registered share Role of shareholder – right to vote on different issues....
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- Summer '07
- Debt, T., wri ting