Business Law- Chapter 26 Flashcards
Creditor
The lender in a credit transaction.
Debtor
The borrower in a credit transaction.
Power of Sale
A power stated in a mortgage or deed that permits foreclosure without court proceedings and sale of the property through an auction.
Deficiency Judgement
A judgement of a court that permits a secured lender to recover other property or income from a defaulting debtor if the collateral is insufficient to repay the unpaid loan.
Antideficiency Statute
A statute that prohibits deficiency judgments regarding certain types of mortgages, such as those on residential property.
Right of Redemption
A right that allows the mortgage to redeem real property after default and before foreclosure. It requires the mortgagor to pay the full amount of the debt incurred by the mortgagee because of the mortgagor’s default.
Land Sales Contract
An arrangement in which the owner of real property sells property to a purchaser and extends credit to the purchaser.
Mechanic’s Lien
A contractor’s, laborer’s and material person’s statuary lien that makes the real property to which services or materials have been provided security for the payment of the services and materials.
Release of Lien
A written document signed by a contractor, subcontractor, laborer, or material person, waiving his or her statutory lien against real property.
Surety Arrangement
An arrangement in which a third party promises to be primarily liable to the borrower for the payment of the borrower’s debt.
Guaranty Arrangement
An arrangement in which a third party promises to be secondarily liable for the payment of another’s debt.
Truth-in -Lending Act (TILA_
A federal statute that requires creditors to make certain disclosures to debtors in consumer transactions and real estate loans on the debtor’s principal dwelling.
Regulation Z
A regulation that sets forth detailed rules for compliance with the TILA
Consumer Leasing Act (CLA)
An amendment to the TILA that extends the TILA’s coverage to lease terms in consumer leases.
Fair Credit and Charge Card Disclosure Act
An amendment to the TILA that requires disclosure of certain credit terms on credit terms on credit card and charge card solicitations and applications.
