mindmap for prof yator
croani
ppt.ppt© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Liens.
Garnishment.
Creditors’ Composition Agreements.
Suretyship.
Guaranty.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Liens: encumbrance (claim upon) on property to satisfy a debt or protect a claim for the payment of debt.
Mechanic’s Liens: security for labor, materials, or service on real estate.
Artisan’s Liens: labor and materials on personal property.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Liens (continued).
Judicial Liens: arises out of a court decision.
Writ of Attachment: court orders sheriff to seize non-exempt property.
Writ of Execution: court order to seize and sell debtor’s non-exempt real and personal property to satisfy debt.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Garnishment: Permits a creditor to collect a debt by seizing property of the debtor held by a third party (garnishee).
Typically the garnishee is the debtor’s employer.
Garnishment Proceedings governed by state law.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Garnishment (continued).
Laws Limiting the Amount of Wages Subject to Garnishment.
Both federal and state laws limit the amount that can be taken out of a debtor’s take home pay.
CASE 28.1 Indiana Surgical Specialists v. Griffin (2007). Should some contractors be exempt from garnishment orders?
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Creditors take less than owed on a liquidated debt.
Binding on those who agree because consideration given by each depending on one another.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Suretyship: Promise by a third person to be primarily liable for the debtor’s obligation to the creditor.
Express contract between surety and the creditor.
Creditor can demand payment from surety at any time after debt is due.
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Suretyship: (continued).
Creditor need not exhaust all legal remedies against the debtor before holding the surety responsible.
Guaranty: third person making the guaranty is secondarily liable.
Guarantor is liable only after the principal debtor defaults.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Guaranty: (continued).
Statute of Frauds requires guaranty to be in writing, unless main purpose exception applies.
CASE 28.2 Overseas Private Investment Corp. v. Kim (2010). Can a guarantor claim ignorance to excuse her from liability?
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Actions Releasing Surety and Guarantor: same as those that will discharge the guarantor.
Defenses: Surety can use any of the principal debtor’s defenses EXCEPT incapacity, bankruptcy, or statute of limitations.
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Defenses: (continued).
Surety can use his own defenses, EXCEPT fraud between debtor and surety that is unknown by creditor.
Material contract modification between debtor and creditor will release a gratuitous surety and a compensated surety to the extent he suffers a loss.
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Defenses: (continued).
Surrender or impairment of the Debtor’s collateral releases surety to the extent he is damaged.
Release of a co-surety releases surety to the extent he is damaged.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Right of Subrogation.
Right of Reimbursement.
Right of Contribution.
Sureties in equal amounts.
Sureties in equal amounts, one or more co-sureties missing or insolvent.
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Exempted Real Property.
Homestead: state laws permit entirely or up to a certain dollar amount.
Exempted Personal Property.
Household furniture up to certain limit.
Clothing and personal possessions.
Vehicle for transportation.
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© 2012 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website for classroom use.
Exempted Personal Property (cont’d).
Certain classified animals.
Equipment debtor uses in a trade or business, up to certain dollar amount.
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