BUS 393 Chapter Notes - Chapter 11: Security Interest, Secured Creditor, Chattel Mortgage

59 views5 pages

Document Summary

A buyer of the car would search the registry and be forewarned to avoid buying it. In the case of default, the bank can recover the vehicle, even from an innocent 3rd party. Guarantees: guarantors must pay when a debtor defaults creates a secondary or conditional obligation that arises only in the event of default. Floating charges: allows flexibility in items taken for security (eg. growing crops, inventories, goods in process of manufacture) Floating charge a security not fixed on any particular assets until default or other specified event, allows business to continue without interference, while giving creditor priority in case of default (eg. inventory, goods in process of manufacturing) In consumer transactions, third party rights as a holder in due course do not apply. Landlord has right to seize, hold, and sell tenant"s assets on rented premises to pay for rent owed (distress)

Get access

Grade+20% off
$8 USD/m$10 USD/m
Billed $96 USD annually
Grade+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
40 Verified Answers
Class+
$8 USD/m
Billed $96 USD annually
Class+
Homework Help
Study Guides
Textbook Solutions
Class Notes
Textbook Notes
Booster Class
30 Verified Answers

Related Documents