MHR 461 Final Exam Cases Questions And
100% Correct Answers
Types of commercial paper - ANSWER 1) non-negotiable instruments
2) Negotiable instruments
A) Orders to pay (Drafts and checks)
i) drawer
ii) drawee
iii) payee
B) Promises to pay (Promissory note and CD)
i) Maker
ii) Payee
Types of Promissory Notes - ANSWER 1) demand note
2) term note
3) installment note
4) balloon note
5) line of credit note
6) Mortgage (secured) note
an interest in real or personal property giving the lender/lienholder the right to have
collateral sold and proceeds applied to debts - ANSWER Lien
A third person who agrees in writing to pay the debt of principal debtor to creditor -
ANSWER Guarantor
, What must be in place for a lien to exist? - ANSWER AN UNDERLYING DEBT
Lien on real property governed by _____
Lien on personal property governed by ______ - ANSWER Common Law
UCC
A voluntary lien on real property created by promissory note and mortgage deed given
by the borrower/mortgager to the lender/mortgagee giving lender the right to have
property sold and proceeds applied to satisfy debt to mortgage - ANSWER Mortgage
lien
A voluntary lien on personal property created by promissory note and a security
agreement given by debtor to a secured part so that the property can be sold and the
proceeds used to pay the debt to the lender - ANSWER Security interest
How is a mortgage lien perfected - ANSWER by mortgagees filing of the mortgage deed
with the county recorders office where the property is located
How is a security interest perfected - ANSWER by secured party's filing of a UCC
financing statement with the secretary of state debtors residence
Types of involuntary liens on real property - ANSWER 1) Judgment lien
2) Mechanics lien
3) tax lien
types of involuntary liens on personal property - ANSWER 1) Sheriffs levy lien
2) Artisans lien
3) Tax lien
The debt is created by a court judgment. The lien is created and perfected by the filing
100% Correct Answers
Types of commercial paper - ANSWER 1) non-negotiable instruments
2) Negotiable instruments
A) Orders to pay (Drafts and checks)
i) drawer
ii) drawee
iii) payee
B) Promises to pay (Promissory note and CD)
i) Maker
ii) Payee
Types of Promissory Notes - ANSWER 1) demand note
2) term note
3) installment note
4) balloon note
5) line of credit note
6) Mortgage (secured) note
an interest in real or personal property giving the lender/lienholder the right to have
collateral sold and proceeds applied to debts - ANSWER Lien
A third person who agrees in writing to pay the debt of principal debtor to creditor -
ANSWER Guarantor
, What must be in place for a lien to exist? - ANSWER AN UNDERLYING DEBT
Lien on real property governed by _____
Lien on personal property governed by ______ - ANSWER Common Law
UCC
A voluntary lien on real property created by promissory note and mortgage deed given
by the borrower/mortgager to the lender/mortgagee giving lender the right to have
property sold and proceeds applied to satisfy debt to mortgage - ANSWER Mortgage
lien
A voluntary lien on personal property created by promissory note and a security
agreement given by debtor to a secured part so that the property can be sold and the
proceeds used to pay the debt to the lender - ANSWER Security interest
How is a mortgage lien perfected - ANSWER by mortgagees filing of the mortgage deed
with the county recorders office where the property is located
How is a security interest perfected - ANSWER by secured party's filing of a UCC
financing statement with the secretary of state debtors residence
Types of involuntary liens on real property - ANSWER 1) Judgment lien
2) Mechanics lien
3) tax lien
types of involuntary liens on personal property - ANSWER 1) Sheriffs levy lien
2) Artisans lien
3) Tax lien
The debt is created by a court judgment. The lien is created and perfected by the filing
