Term
|
Definition
| A check drawn by a bank on itself. |
|
|
Term
|
Definition
| A check that has been accepted by the bank on which it is drawn. Essentially, the bank, by certifying (accepting) the check, promises to pay the check at the time the check is presented |
|
|
Term
|
Definition
| A draft drawn by a drawer ordering the drawee bank or financial institution to pay a certain amount of money to the holder on demand. |
|
|
Term
|
Definition
| A system or place where banks exchange checks and drafts drawn on each other and settle daily balances. |
|
|
Term
|
Definition
| Any bank handling an item for collection, except the payor bank. |
|
|
Term
|
Definition
| A plastic card issued by a financial institution that allows the user to access his or her accounts online via automated teller machines. |
|
|
Term
|
Definition
| The first bank to receive a check for payment. |
|
|
Term
|
Definition
| Funds contained on computer software, in the form of secure programs stored on microchips and other computer devices |
|
|
Term
|
Definition
| Prepaid funds recorded on a computer or a card (such as a smart card). |
|
|
Term
| electronic fund transfer (EFT) |
|
Definition
| A transfer of funds with the use of an electronic terminal, a telephone, a computer, or magnetic tape. |
|
|
Term
|
Definition
| A network of twelve central banks, located around the country and headed by the Federal Reserve Board of Governors. Most banks in the United States have Federal Reserve accounts. |
|
|
Term
|
Definition
| Any bank to which an item is transferred in the course of collection, except the depositary or payor bank. |
|
|
Term
|
Definition
| A check written on a checking account in which there are insufficient funds to cover the amount of the check. |
|
|
Term
|
Definition
| The bank on which a check is drawn (the drawee bank). |
|
|
Term
|
Definition
| A set of rules issued by the Federal Reserve System's Board of Governors under the authority of the Electronic Fund Transfer Act to protect users of electronic fund transfer systems. |
|
|
Term
|
Definition
| Prepaid funds recorded on a microprocessor chip embedded on a card. One type of e-money. |
|
|
Term
|
Definition
| A check, other than a certified check, that is presented for payment more than six months after its date. |
|
|
Term
|
Definition
| An order by a bank customer to his or her bank not to pay or certify a certain check. |
|
|
Term
|
Definition
| A negotiable instrument drawn by a bank on another bank or drawn by a bank and payable at or payable through a bank. |
|
|
Term
|
Definition
| A check that is payable on demand, drawn on or payable through a bank, and designated as a traveler's check. |
|
|
Term
| The main focus of Article 4 of the UCC is: |
|
Definition
| to establish a framework for banking relationships. |
|
|
Term
| If Sandra, making her monthly payment on her student loan, writes a check payable to the U.S. Department of Education (DOE), the DOE is which of the following with respect to this check? |
|
Definition
| The payee, because it is the party being paid. |
|
|
Term
| When a bank draws a check on itself, this is known as: |
|
Definition
|
|
Term
| When a customer writes a check on his or her account, what kind of legal relationship arises between the bank and the customer |
|
Definition
|
|
Term
| Lynn loses three checks from her checkbook: #536, #537, and #538. She requests and executes a written stop-payment order with her bank, ordering the bank not to pay these checks. Three months later, her bank pays check #537 in the amount of $1,500, causing Lynn's account to be overdrawn. In this situation: |
|
Definition
|
|
Term
| A drawer may be liable for a forged check if: |
|
Definition
| the drawer's negligence contributed to the loss. |
|
|
Term
| The Federal Reserve System, which clears many checks in the United States, is: |
|
Definition
| a network of twelve district banks located around the United States and headed by the Federal Reserve Board of Governors. |
|
|
Term
| The Electronic Fund Transfer Act states that you will only be liable for $50 if someone steals your debit card, as long as: |
|
Definition
| you report the theft within two days of discovering it |
|
|
Term
| Which of the following would NOT be considered an online banking service? |
|
Definition
|
|
Term
| In 2001, the National Conference of Commissioners on Uniform State Laws proposed to the states for adoption a new uniform law that would subject online and e-money services to the same regulations that apply to other, traditional financial service businesses. This new law is known as: |
|
Definition
| the Uniform Money Services Business Act. |
|
|
Term
|
Definition
| A possessory lien given to a person who has made improvements and added value to another person's personal property as security for payment for services performed. |
|
|
Term
|
Definition
| (1) In the context of secured transactions, the process by which a security interest in the property of another becomes enforceable. (2) In the context of judicial liens, a court-ordered seizure and taking into custody of property prior to the securing of a judgment for a past-due debt. |
|
|
Term
|
Definition
| A joint surety. One who assumes liability jointly with another surety for the payment of an obligation. |
|
|
Term
| creditors' composition agreement |
|
Definition
| An agreement formed between a debtor and his or her creditors in which the creditors agree to accept a lesser sum than that owed by the debtor in full satisfaction of the debt. |
|
|
Term
|
Definition
| The failure to observe a promise or discharge an obligation. The term is commonly used to mean the failure to pay a debt when it is due. |
|
|
Term
|
Definition
| A legal process used by a creditor to collect a debt by seizing property of the debtor (such as wages) that is being held by a third party (such as the debtor's employer). |
|
|
Term
|
Definition
| A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults; a guarantor's liability is thus secondary. |
|
|
Term
|
Definition
| A law permitting a debtor to retain the family home, either in its entirety or up to a specified dollar amount, free from the claims of unsecured creditors or trustees in bankruptcy. |
|
|
Term
|
Definition
| (pronounced leen) A claim against specific property to satisfy a debt. |
|
|
Term
|
Definition
| A statutory lien on the real property of another, created to ensure payment for work performed and materials furnished in the repair or improvement of real property, such as a building |
|
|
Term
|
Definition
| A written instrument giving a creditor (the mortgagee) an interest in (a lien on) the debtor's (mortgagor's) property as security for a debt. |
|
|
Term
|
Definition
| Under a mortgage agreement, the creditor who takes a security interest in the debtor's property |
|
|
Term
|
Definition
| Under a mortgage agreement, the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan. |
|
|
Term
|
Definition
| The right of a co-surety who pays more than his or her proportionate share on a debtor's default to recover the excess paid from other co-sureties. |
|
|
Term
|
Definition
| The right of a mortgagor who has breached the mortgage agreement to redeem or purchase the property prior to foreclosure proceedings. |
|
|
Term
|
Definition
| The legal right of a person to be restored, repaid, or indemnified for costs, expenses, or losses incurred or expended on behalf of another |
|
|
Term
|
Definition
| The right of a person to stand in the place of (be substituted for) another, giving the substituted party the same legal rights that the original party had. |
|
|
Term
|
Definition
| A person, such as a cosigner on a note, who agrees to be primarily responsible for the debt of another. |
|
|
Term
|
Definition
| An express contract in which a third party to a debtor-creditor relationship (the surety) promises to be primarily responsible for the debtor's obligation. |
|
|
Term
|
Definition
| A court's order, prior to a trial to collect a debt, directing the sheriff or other officer to seize nonexempt property of the debtor; if the creditor prevails at trial, the seized property can be sold to satisfy the judgment. |
|
|
Term
|
Definition
| A court's order, after a judgment has been entered against the debtor, directing the sheriff to seize (levy) and sell any of the debtor's nonexempt real or personal property. The proceeds of the sale are used to pay off the judgment, accrued interest, and costs of the sale; any surplus is paid to the debtor. |
|
|
Term
| A lien may be defined as: |
|
Definition
| a claim or charge on a debtor's property that must be satisfied before the property is available to satisfy other creditors' claims |
|
|
Term
| LaVon contracts with Phil to remodel and retile Paul's bathroom. LaVon finishes the job and gives Phil a bill for $14,000 for labor and materials. Phil refuses to pay. In this case, LaVon may seek: |
|
Definition
|
|
Term
| What if LaVon agreed to repair Phil's vintage 1957 Cadillac at her garage. The price tag for the repairs is $14,000. After the work is completed, Phil refuses to pay. Assuming that LaVon retains possession of the Cadillac, what kind of lien may she seek to recover the cost of her labor? |
|
Definition
|
|
Term
| What if LaVon agreed to repair Phil's vintage 1957 Cadillac at her garage. The price tag for the repairs is $14,000. After the work is completed, Phil refuses to pay. Now assume that LaVon does not have the car any longer. One of her assistants mistakenly allowed Phil to drive it home, where he has it hidden in his garage. LaVon files a breach of contract claim against Phil. She also asks the court to order the sheriff or other officer to seize and take custody of the Cadillac before the trial, what is this court order called? |
|
Definition
|
|
Term
| What is the usual method of foreclosure? |
|
Definition
| Judicial sale of the property |
|
|
Term
| Kelly promises Mountain State Bank that she will be responsible for a loan taken out by her niece Dallas such that at the moment the debt is due, Mountain State may demand repayment from Kelly. This is known as: |
|
Definition
|
|
Term
| Which of the following actions will release a surety from his or her obligations? |
|
Definition
| A material modification of the terms of the original contract without the surety's consent. |
|
|
Term
| In each state of the United States, debtors are permitted to either retain their family home or keep up to a specified dollar amount of the value of the home. This is known as: |
|
Definition
|
|
Term
| Which of the following is an example of personal property that normally WOULD NOT be exempt from the satisfaction of judgment debts? |
|
Definition
|
|
Term
| A federal law that protects consumers by requiring creditors to disclose specific types of information when making consumer loans is known as |
|
Definition
| the Truth-in-Lending Act. |
|
|
Term
|
Definition
| Property of the debtor that is acquired after the execution of a security agreement. |
|
|
Term
|
Definition
| (1) In the context of secured transactions, the process by which a security interest in the property of another becomes enforceable. (2) In the context of judicial liens, a court-ordered seizure and taking into custody of property prior to the securing of a judgment for a past-due debt. |
|
|
Term
|
Definition
| To sign a record, or with the intent to sign a record, to execute or to adopt an electronic sound, symbol, or the like to link with the record. A record is retrievable information inscribed on a tangible medium or stored in an electronic or other medium. |
|
|
Term
|
Definition
| Under Article 9 of the Uniform Commercial Code, the property subject to a security interest. |
|
|
Term
|
Definition
| A statement that, if filed within six months prior to the expiration date of the original financing statement, continues the perfection of the original security interest for another five years. The perfection of a security interest can be continued in the same manner indefinitely. |
|
|
Term
|
Definition
| The use of an asset that is not the subject of a loan to collateralize that loan. |
|
|
Term
|
Definition
| Under Article 9 of the Uniform Commercial Code, a debtor is any party who owes payment or performance of a secured obligation, whether or not the party actually owns or has rights in the collateral. |
|
|
Term
|
Definition
| A judgment against a debtor for the amount of a debt remaining unpaid after collateral has been repossessed and sold. |
|
|
Term
|
Definition
| A document prepared by a secured creditor and filed with the appropriate government official to give notice to the public that the creditor claims an interest in collateral belonging to the debtor named in the statement. The financing statement must contain the names and addresses of both the debtor and the creditor, and describe the collateral by type or item |
|
|
Term
|
Definition
| A security interest in proceeds, after-acquired property, or property purchased under a line of credit (or all three); a security interest in collateral that is retained even when the collateral changes in character, classification, or location. |
|
|
Term
|
Definition
| A person or business who holds a lien that is subordinate to one or more other liens on the same property. |
|
|
Term
|
Definition
| The obtaining of money by legal process through the seizure and sale of property, usually done after a writ of execution has been issued. |
|
|
Term
|
Definition
| The legal process by which secured parties protect themselves against the claims of third parties who may wish to have their debts satisfied out of the same collateral; usually accomplished by the filing of a financing statement with the appropriate government official. |
|
|
Term
|
Definition
| A common law security device (retained in Article 9 of the Uniform Commercial Code) in which personal property is turned over to the creditor as security for the payment of a debt and retained by the creditor until the debt is paid. |
|
|
Term
|
Definition
| Under Article 9 of the Uniform Commercial Code, whatever is received when the collateral is sold or otherwise disposed of, such as by exchange. |
|
|
Term
| purchase-money security interest (PMSI) |
|
Definition
| A security interest that arises when a seller or lender extends credit for part or all of the purchase price of goods purchased by a buyer. |
|
|
Term
|
Definition
| A lender, seller, or any other person in whose favor there is a security interest, including a person to whom accounts or chattel paper has been sold. |
|
|
Term
|
Definition
| Any transaction in which the payment of a debt is guaranteed, or secured, by personal property owned by the debtor or in which the debtor has a legal interest. |
|
|
Term
|
Definition
| An agreement that creates or provides for a security interest between the debtor and a secured party. |
|
|
Term
|
Definition
| Any interest in personal property or fixtures which secures payment or performance of an obligation [UCC 1201(37)]. |
|
|
Term
| Which article of the UCC governs secured transactions? |
|
Definition
|
|
Term
| Financing statements are filed publicly so that: |
|
Definition
| third parties can learn of the secured party's security interest in the debtor's collateral. |
|
|
Term
| In order for Karen to obtain a security interest in Paul's property, which of the following IS NOT a requirement? |
|
Definition
| Paul must not have legal rights in the collateral. |
|
|
Term
| In the context of secured transactions, attachment |
|
Definition
| gives the creditor an enforceable security interest in the collateral. |
|
|
Term
| Collateral is generally divided into which of the following classifications? |
|
Definition
| Tangible and intangible collateral |
|
|
Term
| Perfection is the legal process by which secured parties |
|
Definition
| protect themselves against the claims of third parties who want their debts satisfied out of the same collateral. |
|
|
Term
| The most common means of perfecting a security interest is: |
|
Definition
|
|
Term
| A security interest can be perfected without filing a financing statement when: |
|
Definition
| the collateral is transferred into the possession of the secured party. |
|
|
Term
| If you buy a TV and a DVD player from Circuit City (a large consumer electronics store) and if Circuit City agrees to lend you 90 percent of the purchase price, this is known as: |
|
Definition
| a purchase-money security interest. |
|
|
Term
| One of the basic remedies for default consists of: |
|
Definition
|
|
