Author Question: Fowler Bros. has applied to Gibralter Bank for a 50,000 loan for its business expansion. If Fowler ... (Read 89 times)

crazycityslicker

  • Hero Member
  • *****
  • Posts: 537
Fowler Bros. has applied to Gibralter Bank for a 50,000 loan for its business expansion. If Fowler Bros. plans to use its account at Gibralter Bank as collateral, discuss what the bank needs to do for a security interest to attach.

Question 2

In an international transaction, the seller risk is called credit risk and the buyer's risk is called delivery risk.
  Indicate whether the statement is true or false



ASDFGJLO

  • Sr. Member
  • ****
  • Posts: 335
Answer to Question 1

Attachment is a vital step in a secured transaction. For an enforceable security interest to be created, or to attach, three steps must occur: the parties must make a security agreement and either the debtor has to authenticate a security agreement describing the collateral or the secured party has to obtain possession or control of the collateral, the secured party must give value to obtain the security agreement, and the debtor must have rights in the collateral. Ordinarily the agreement is in writing and signed by the debtor or electronically recorded and authenticated by the debtor. In this case, however, it will be sufficient if the parties have an oral agreement since the bank, the secured party, has control of the deposit account being used for collateral. The second element, value, is the money the bank loans. The third element is that the debtor has rights in the collateral. Fowler Bros. has a legal right to its deposit account in Gibralter Bank.

Answer to Question 2

TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

More than 34,000 trademarked medication names and more than 10,000 generic medication names are in use in the United States.

Did you know?

Fewer than 10% of babies are born on their exact due dates, 50% are born within 1 week of the due date, and 90% are born within 2 weeks of the date.

Did you know?

In 2012, nearly 24 milliion Americans, aged 12 and older, had abused an illicit drug, according to the National Institute on Drug Abuse (NIDA).

Did you know?

All adverse reactions are commonly charted in red ink in the patient's record and usually are noted on the front of the chart. Failure to follow correct documentation procedures may result in malpractice lawsuits.

Did you know?

Approximately one in four people diagnosed with diabetes will develop foot problems. Of these, about one-third will require lower extremity amputation.

For a complete list of videos, visit our video library