Question 1

If the surety has to perform the principal's obligation, then the surety acquires all the rights that the creditor had against the principal. This is known as the surety's right _____.

Accepted Answer

A)   to contribution
B)   of subrogation
C)   to compensation
D)   to reimbursement

Question 2

Which of the following statements is true of accommodation sureties?

Accepted Answer

A)   They are people paid for serving as a surety.
B)   They are protected by the courts at a higher level than other types of sureties.
C)   They must show that they will be harmed by an extension of time before they are relieved of responsibility.
D)   They are professional companies that take payment for acting as a surety.

Question 3

The rights and liabilities of the surety and the guarantor are substantially different.

Accepted Answer

A) True 
 B)False

Question 4

In a deed of trust transaction, when a trustee sells the property and the proceeds generate a deficiency, the _____.

Accepted Answer

A)   borrower is relieved of all obligations to the lender
B)   lender may sue the borrower on the debt and recover a judgment
C)   lender may sue the trustee
D)   trustee may sue the borrower

Question 5

Each state has a statute that permits persons who contract to furnish labor or materials to improve real estate to claim a lien on the property until they are paid.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following statements best defines a surety?

Accepted Answer

A)   A person who is liable for the performance of another person's duty
B)   A person who is not liable for the payment of a principal's debts
C)   A person who makes a separate promise to be liable for the payment of a principal's debts
D)   A person who is not entitled to be reimbursed by the principal

Question 7

The provider of materials or labor is not entitled to a lien if the:

Accepted Answer

A)   property is a public property.
B)   materials are provided without reference to a particular property.
C)   materialman is not a general contractor.
D)   property is under a land sales contract or mortgage.

Question 8

The basic rules of strict liability apply in determining the existence and nature of the relationship of principal and surety.

Accepted Answer

A) True 
 B)False

Question 9

If mortgagors sell the interest in their property without the consent of the mortgagee, _____.

Accepted Answer

A)   they have acted illegally
B)   the sale does not affect the mortgagee's interest in the property
C)   the mortgagee will lose his or her interest in the property
D)   the mortgagee will lose all claims against the mortgagor

Question 10

In a deed of trust transaction, when a trustee sells the property and the proceeds generate a surplus, it _____.

Accepted Answer

A)   is paid to the borrower
B)   is paid to the lender
C)   is paid to the trustee
D)   goes to the state

Exam 42: Introduction to Security

In a deed of trust transaction, when a trustee sells the property and the proceeds generate a surplus, it _____.

Correct Answer
verified

Which of the following statements best defines a surety?

Correct Answer
verified

The rights and liabilities of the surety and the guarantor are substantially different.

Correct Answer
verified

If the surety has to perform the principal's obligation, then the surety acquires all the rights that the creditor had against the principal. This is known as the surety's right _____.

Correct Answer
verified

Each state has a statute that permits persons who contract to furnish labor or materials to improve real estate to claim a lien on the property until they are paid.

Correct Answer
verified

Which of the following statements is true of accommodation sureties?

Correct Answer
verified

In a deed of trust transaction, when a trustee sells the property and the proceeds generate a deficiency, the _____.

Correct Answer
verified

The basic rules of strict liability apply in determining the existence and nature of the relationship of principal and surety.

Correct Answer
verified

The provider of materials or labor is not entitled to a lien if the:

Correct Answer
verified

If mortgagors sell the interest in their property without the consent of the mortgagee, _____.

Correct Answer
verified

Exam 42: Introduction to Security

In a deed of trust transaction, when a trustee sells the property and the proceeds generate a surplus, it _____.

Correct AnswerverifiedShow Answer

Which of the following statements best defines a surety?

Correct AnswerverifiedShow Answer

The rights and liabilities of the surety and the guarantor are substantially different.

Correct AnswerverifiedShow Answer

If the surety has to perform the principal's obligation, then the surety acquires all the rights that the creditor had against the principal. This is known as the surety's right _____.

Correct AnswerverifiedShow Answer

Each state has a statute that permits persons who contract to furnish labor or materials to improve real estate to claim a lien on the property until they are paid.

Correct AnswerverifiedShow Answer

Which of the following statements is true of accommodation sureties?

Correct AnswerverifiedShow Answer

In a deed of trust transaction, when a trustee sells the property and the proceeds generate a deficiency, the _____.

Correct AnswerverifiedShow Answer

The basic rules of strict liability apply in determining the existence and nature of the relationship of principal and surety.

Correct AnswerverifiedShow Answer

The provider of materials or labor is not entitled to a lien if the:

Correct AnswerverifiedShow Answer

If mortgagors sell the interest in their property without the consent of the mortgagee, _____.

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
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