Business Law

  1. 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.
    Artisan's Lien
  2. (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.
  3. A joing surety. One who assumes liability jointly with another surety for the payment of an obligation.
  4. 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.
    Creditors' Composition Agreement
  5. 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.
  6. 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).
  7. A person who agrees to satisfy the debt of another (the debtor) only after the principal debtor defaults; a ________ liability is thus secondary.
  8. 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.
    Homestead Exemption
  9. A claim against specific property to satisfy a debt.
    Lien (pronounced leen)
  10. 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.
    Mechanic's Lien
  11. A written instrument giving a creditor an interest in (a lien on) the debtor's property as security for a debt.
  12. Under a mortgage agreement, the creditor who takes a security interest in the debtor's property.
  13. Under a mortgage agreement, the debtor who gives the creditor a security interest in the debtor's property in return for a mortgage loan.
  14. 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.
    Right of Contribution
  15. The right of a mortgagor who has breached the mortgage agreement to redeem or purchase the property prior to foreclosure proceedings.
    Right of Redemption
  16. the legal right of a person to be restored, repaid, or indemnified for costs, expenses, or losses incurred or expended on behalf of another.
    Right of Reimbursement
  17. 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.
    Right of Subrogation
  18. A person, such as a cosigner on a note, who agrees to be primarily responsible for the debt of another.
  19. 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.
  20. 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.
    Writ of Attachment
  21. A court's oder, after a judgement has been entered against teh debtor, directing the sheriff to seize (levy) and sell any o 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.
    Writ of Execution
Card Set
Business Law
Creditor's Rights and Remedies