Author Question: In a negotiable instrument, the promise or order to pay must be unconditional. Indicate whether the ... (Read 58 times)

cagreen833 · **on:** Jun 24, 2018

In a negotiable instrument, the promise or order to pay must be unconditional.
Indicate whether the statement is true or false

Question 2

James and Debra Reid purchased a home for 623,000 in January 2014. They put down 62,300 and financed the remainder with Fifth Third Bank. Fifth Third Bank recorded its mortgage on February 1, 2014. On March 31, 2014, the Reids purchased a swimming pool and the pool contractors, Cristoria Pools, financed the construction for 45.000. Cristoria recorded a second mortgage on the property on April 15, 2014. On December 15, 2014, the Reids sold their house to the Griffins for 720,000. The Griffins put 120,000 down and agreed to pay the Reids for the existing mortgage in wrap-around. The mortgage balance at the time of the sale was 619,000. The balance on the Cristoria mortgage was 42,000. On August 15, 2015, the Griffins defaulted on their payments. The Reids had already purchased another home and were unable to make the payments on the home. Fifth Third Bank foreclosed on the mortgage. Who has second priority after expenses are paid?
A)Fifth Third Bank
B)Cristoria Pools
C)The Reids
D)The Griffins