BULL 3320 CH 26 EXAM QUESTIONS AND ANSWERS

BULL 3320 CH 26 EXAM QUESTIONS AND ANSWERS credit - answer- occurs when one party makes a loan to another party creditor - answer- the lender in a credit transaction debtor - answer- the borrower in a credit transaction Unsecured Credit - answer- credit that does not require any security (collateral) to protect the payment of the debt Secured Credit - answer- Credit that requires security (collateral) that secures payment of the loan mortgage - answer- an arrangement where an owner of real property borrows money from a lender and pledges the real property as collateral to secure the repayment of the loan Mortgagor - answer- the owner-debtor in a mortgage transaction Mortgagee - answer- the creditor in a mortgage transaction note - answer- An instrument that evidences a borrower's debt to the lender Deed of Trust - answer- An instrument that gives a creditor a security interest in the debtor's real property that is pledged as collateral for a loan Recording Statutes - answer- A statute that requires a mortgage or deed of trust to be recorded in the county recorder's office of the county in which the real property is located forclosure sale - answer- a legal procedure by which a secured creditor causes the judicial sale of the secured real estate to pay a defaulted loan power of sale - answer- A power stated in a mortgage or deed that permits foreclosure without court proceedings and sale of the property through an auction Deficiancy Judgement - answer- a judgement of a court that permits a secured lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan. antideficiency statute - answer- A statute that prohibits deficiency judgments regarding certain types of mortgages, such as those on residential property Rights of Redemption - answer- allows mortgagor to get back land upon payment of the full amount of the debt construction lien (mechanic's lien) - answer- a contractor's, laborer's, supplier's, or design professional's statutory lien that makes the real property to which services or materials have been provided security for the payment of the services and materials lien release - answer- A written document signed by a contractor, subcontractor, laborer, or material person, waiving his or her statutory lien against real property land sales contract - answer- An arrangement in which the owner of real property sells property to a purchaser and extends credit to the purchaser Surety Arrangement - answer- An arrangement in which a third party promises to be primarily liable with the borrower for the payment of the borrower's debt Guaranty Arrangement - answer- An arrangement in which a third party promises to be secondarily liable for the payment of another's debt Writ of Attachment - answer- a prejudgment court order that permits the seizure of a debtor's property while a lawsuit is pending writ of execution - answer- a postjudgment court order that permits the seizure of the debtor's property that is in the possession of the debtor writ of garnishment - answer- A postjudgment court order that permits the seizure of a debtor's property that is in the possession of third parties Title III of the Consumer Credit Protection Act - answer- A federal law that permits debtors who are subject to a writ of garnishment to retain a specified percentage or amount of their earnings Consumer Financial Protection Bureau (CFPB) - answer- A federal administrative agency that is responsible for enforcing federal consumer financial protection statutes Truth in Lending Act (TILA) - answer- A federal statute that requires creditors to make certain disclosures to debtors in consumer transactions and real estate loans on the debtor's principal dwelling regulation z - answer- A regulation that sets forth detailed rules for compliance with the TILA Consumer Leasing Act (CLA) - answer- A federal statute that extends the TILA's coverage to lease terms in consumer leases Fair Credit Billing Act - answer- A federal statute that requires that creditors promptly acknowledge in writing consumer billing complaints and investigate billing errors and affords consumer-debtors other protection during billing disputes Credit CARD Accountability Act of 2009 - answer- a federal statute that requires disclosures to consumers concerning credit card terms, adds transparency to the creditor-debtor