Chapter 28 - Credit & Secured Transactions

A guarantor is primarily liable for debtor’s obligation, and the creditor can demand performance.

• True
• False

Since a surety is not the principle debtor, it has no defenses available.

• True
• False

A bond company is a compensated surety.

• True
• False

A creditor must disclose to a surety all information and opinion about the risk involved in a particular debtor.

• True
• False

Foreclosure means that the mortgagor’s rights to the property are terminated.

• True
• False

A mortgage is a security interest in (or deed to) personal property.

• True
• False

Which two statutory systems permit one who furnishes labor or materials to improve real estate to claim a lien?

• The Torrens and Priority systems.
• The Pennsylvania and New York systems.
• The New York and New Jersey systems.
• None of the above.