Dollar value motors asks estimable bank for a loan to

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Dollar Value Motors asks Estimable Bank for a loan to increase its vehicle inventory. Estimable requires Flair, Dollar Value's president, sign a personal guaranty to pay the debt if Dollar Value defaults. Meanwhile, to buy a pick-up truck from Dollar Value, Gina asks Harper to co-sign a credit application. Refer to Fact Pattern 28-1A. If Flair is a guarantor, then the guaranty is required to be in writing because of – the Statute of Frauds Residence Painting Company has a claim against Stuart's property to satisfy a debt that takes priority over other claims against the same property. This is – a lien A default occurs when a debtor fails to pay a creditor as promised. – true The distinctions between a surety and a guarantor have been abolished in all states. – false A mechanic's lien can be enforced to recover payment from a debtor for labor and materials in the repair of personal property. – false-artisans Speedy Delivery Company buys a white van from Tom's Terrific Vehicles, on credit under a guaranty signed by Ulysses, Speedy's president, making him personally liable if Speedy does not pay. Ulysses is – a guarantor
Ch. 29 Answers A purchase-money security interest in a business's inventory is perfected automatically at the time of a credit sale. – false Olive borrows from Polo and Quennell, using the same collateral for both loans. Only Quennell has a perfected security interest. Olive defaults on both loans. The party with first rights to the collateral is – quennell Clear Sky Credit Corporation asks Dimension Games Company to agree to a security agreement that provides for coverage of the proceeds from the sale of after-acquired property. This is – a floating lien Advances against lines of credit can be subject to a properly perfected security interest in certain collateral. – true Bayside Credit Corporation lends funds to Claude, a consumer, to apply to the cost of a boat, which is the collateral for the loan. An enforceable security interest requires - a written agreement OR Bayside's possession of the boat. A security interest that provides for a security interest in after-acquired property is a floating lien. true A financing statement cannot be filed electronically. – false Any creditor who has a security interest in a debtor's collateral is the secured party. – false OK Investments, Inc., files a financing statement to provide notice of its security interest in the property of Pancake House Restaurant. The initial effective term of a financing statement is a period of – five years

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