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Unformatted text preview: by the payee to procure the signing of the note. Lack of valuable consideration from the payee to the maker. Prior payment or cancellation. If payee owed maker an amount of money on another obligation, the current negotiable note is not a “set–off' once it has been transferred to a holder in due course. Real Defenses – These are defenses allowed against anyone, even a holder in due course; they result from major defects in the validity of the contract or document • • • • Incapacity of the maker. Illegality of the instrument, such as a note used in connection with illegal conduct Forged document. Material alteration (holder in due course may collect on original legal terms of the note). Form 8-1: Promissory Note ( 3 pages) 8-4 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 8: FINANCING INSTRUMENTS Dynasty School (www.dynastySchool.com) 8-5 REAL ESTATE FINANCE 8-6 Licensing School for Appraisal, CPA, Contractors, Insurance, Real Estate, Notary, Nurse, Food Handlers, Tax and Securities 8: FINANCING INSTRUMENTS Dynasty School (www.dynastySchool.com) 8-7 REAL ESTATE FINANCE MORTGAGES AND TRUST DEEDS
Mortgages and trust deeds are liens, or charges upon a property, by which property or title has been made the security for repayment of money by the borrower. The term “mortgage” is commonly used with two different meanings. In its generic meaning, the word mortgage is used to describe any device used for the pledging of property to a creditor as security for the payment of a debt. In that sense of the word, it is correct to say that in California we usually use the deed of trust as our form of mortgage. In California we have “mortgage companies,” not “trust deed companies.” On the other hand, a standard mortgage contract is technically quite different from a trust deed and is rarely used in California, although it is still used in a majority of the states. We will look at mortgag...
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This note was uploaded on 12/30/2010 for the course SOC 101 taught by Professor Zhung during the Spring '10 term at Punjab Engineering College.
- Spring '10