MKT 100 Study Guide - Consumer Protection, Security Interest, Secured Creditor
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MKT 100 Full Course Notes
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Creditors have 2 ways of managing risk that debtor will not pay: Chapter 23: secured transactions: security interests, guarantees. Security interest: allows a creditor to seize some of a debtor"s personal property if a debt is not repaid. Collateral: property that is subject to a security interest. Secured party: a creditor that has a security interest: a security interest can be given over any type of property to any type of creditor. Guarantee: a contractual promise by a third party, called a guarantor, to satisfy the principal debtor"s obligation if that debtor fails to do so. Chattel mortgage: a transaction in which a debtor gives a creditor title to some specific personal property to secure the performance of an obligation it owes to the creditor. Conditional sale: occurs when the seller retains ownership of the goods to secure payment of the purchase price by the buyer.