BUS 018 Lecture Notes - Lecture 18: Unsecured Creditor, Chattel Mortgage, Secured Creditor

• School: College of The Sequoias
• Department: Business (BUS)
• Course: BUS 018
• Professor: Baiza

Document Summary

What is the relationship between a debtor and creditor it"s a contract. You want to minimize the risk of default. The best way to mitigate the risk of loans is to lend to appropriate individuals. This is the most effective way to minimize the risk of default. These are the most effective strategies a creditor can use to minimize the risk of default. Most companies don"t finance their sales, they have separate divisions that do all the financing that specializes in credit. *not going to go into details on security interest and pbsa most questions will be fundamental questions and if you know the fundamentals then the details make more sense afterwards. Ppsa governs every transaction where collateral is used to secure payment of a debt. Chattel mortgage, debenture, general security agreement these are all terms used to describe contracts which provide security and all governed by the ppsa.