Final Examination in Credit and Collection

An estimate or opinion of value in writing of a described property as of a specified date and supported by a presentation and analysis of factual and relevant data.

• Current Ratio

• Acid Test Ratio

• Conditions

• Appraisal

The process of finding out via proper analysis of what constitutes the degree of risk the company is willing to undertake.

• Personal Interview

• Documentary Verification

• Credit Evaluation

• Credit Policies

General statements used as guides for the organization

and a reflection of the organization’s philosophy.

• Policy

• Credit Investigation

• Code of Ethics

• Credit Evaluation

The maximum amount that could be granted to one borrower.

• Approval authority

• Credit limits

• Loan-to-market value ratios

• Past due limits

Represents the maximum loan that could be granted based on the property’s market value.

• Loan-to-market value ratios

• Durables

• Loan value

• Secured loans

I states that no interest shall be due unless it has been expressly stipulated in writing.

• Art. 1957

• Art 1955

• Art 1956

• Art. 1959

It states that interest due and unpaid shall not earn interest. However, the contracting parties may by stipulation capitalize the interest due and unpaid which as added principal shall earn new interest.

• Art. 1959

• Art. 1957

• Art. 1958

• Art. 1956

The rate that does not change during the credit period.

• Fixed rate

• Variable rate

• Floating rate

• Variable and Floating rate

The ability to carry the debt.

• Condition

• Collateral

• Capacity

• Character

The ability to repay the debt.

• Capacity

• Character

• Condition

• Capital