LAW 603 Chapter Notes - Chapter 23: Floating Charge, Greater Than One, Unsecured Debt

• School: Ryerson University
• Department: Law and Business
• Course: LAW 603
• Professor: Gil Lan

Document Summary

Creditor: person who allows time to pass before requiring to pay. Lending transaction debtor often agrees to provide the creditor with ownership, or some other form of security interest, in a specific piece of its personal property. Chattel mortgage: transaction in which a debtor gives a creditor title to some specific personal property to secure the performance of an obligation it owes to the creditor. Conditional sales: occurs when the seller retains ownership of the goods to secure payment of the purchase price by the buyer. *** buyer gets possessio(cid:374) of the goods i(cid:373)(cid:373)ediatel(cid:455) (cid:271)ut the(cid:455) do(cid:374)"t own the(cid:373) u(cid:374)til the(cid:455) pa(cid:455) the full p(cid:396)i(cid:272)e sometimes buyer may be required to buy insurance to cover the goods while payment is pending. Bank makes decision to lend money based on two factors: Its assessment of ability to make loan payments. Its assessment of its own ability to acquire and sell the collateral in the event of default on payments.