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- Angela Brock borrowed $544,000 and signed a note payable to Amerifund Mortgage Services, LLC, to buy a house in Silver Spring, Maryland. The note was endorsed in blank and transferred several times "without recourse" before Brock fell behind on the payments. On behalf of Deutsche Bank National Trust Co., BAC Home Loans Servicing LP initiated foreclosure. Brock filed an action in a Maryland state court to block it, arguing that BAC could not foreclose because Deutsche Bank, not BAC, owned the note. Can BAC enforce the note? Explain why or why not.
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- Antonio's bank foreclosed on his retail building when he stopped making loan payments. The nonrecourse loan was secured by the building when he purchased it three years ago for $665,000. Antonio's Form 1099-A, Acquisition or Abandonment of Secured Property, indicated that the debt at the time of foreclosure was $625,000, and the fair market value (FMV) of the building was $680,000. If the building is sold for the FMV, how much of Antonio's personal assets can the bank attempt to collect to satisfy the judgment?Erin's bank foreclosed on her office building when she stopped making payments on her loan. The loan was secured by the building when she purchased it three years ago for $750,000. Erin's Form 1099-A is shown below. If the building is sold for the fair market value (FMV), how much of Erin's personal assets can the lender attempt to collect to satisfy the judgment? (Answer choices are below the image.) LENDER'S name, street address, city or town, state or province, country, ZIP or foreign postal code, and telephone no. OAK RIDGE BANK 301 AUSTIN STREET YOUR CITY, YS XXXXX (XXX) 555-5678 LENDER'S TIN XX-XXXXXXX BORROWER'S name ERIN HERNANDEZ Street address (including apt. no.) 308 VIRGINIA AVENUE CORRECTED (if checked) BORROWER'S TIN XXX-XX-XXXX Account number (see instructions) XXXXXXXX Form 1099-A (Rev. 1-2022) City or town, state or province, country, and ZIP or foreign postal code YOUR CITY, YS XXXXX (keep for your records) $615.000 $595,000 $20,000 OSO (None of Erin's personal…Leonard and Arlene Warner sold the Warner Manufacturing Company to Elliott and Carol Archer for $610,000. A few months later the Archers sued the Warners in a state court for fraud connected with the sale. The parties settled the lawsuit for $300,000. The Warners paid the Archers $200,000 and executed a promissory note for the remaining $100,000. After the Warners failed to make the first payment on the $100,000 promissory note, the Archers sued for the payment in state court. The Warners then filed for bankruptcy of the Bankruptcy Code. The Archers claimed that the $100,000 debt was nondischargeable because it was for “money obtained by fraud.” Arlene Warner claimed that the $100,000 debt was dischargeable in bankruptcy because it was a new debt for money promised in a settlement contract and thus it was not a debt for money obtained by fraud.a. What are the arguments that the debt is dischargeable in bankruptcy?b. What are the arguments that the debt is not dischargeable in…
- Doe purchased an automobile from Jones for $1,000. Unknown to Doe, Jones had used the automobile as security for a loan from his bank, and the bank had registered its security interest in the automobile under the provincial personal property security registration legislation. A few months after the sale, Jones defaulted on the loan, and the bank discovered that Doe was in possession of the automobile. The bank is not entitled to seize the automobile, because it had not given Doe notice of its claim against the vehicle before Doe purchased it. True FalseMohammed is in serious financial difficulty and is unable to meet current unsecured obligations of $20,000 to some 14 creditors who are demanding immediate payment. Mohammed owes Aminu $5,000, and Aminu has decided to file an involuntary petition against Mohammed. Which of the following is necessary for Aminu? Aminu must be joined by at least two other creditors. Mohammed must have commited a fraudulent act within one year of the filing. Aminu must allege and subsequently establish that Mohammed's liabilities exceed its assets upon fair valuation. Aminu must be a secured creditor.A buyer purchases property for $45,000 in cash and assumes the seller's outstanding mortgage balance of $98,500. The lender executes a release for the seller. The buyer fails to make any mortgage payments, and the lender forecloses. At the foreclosure sale, the property is sold for $75,000. Based on these facts, unless state law provides anti-deficiency protection, who is liable, and for what amount? The seller is solely liable for $23,500. The buyer is solely liable for $23,500. The buyer and the seller are equally liable for $23,500. The buyer is solely liable for $30,000
- Sweet Company recently was sued by a competitor for patent infringement. Attorneys have determined that it is probable that Sweet will lose the case and that a reasonable estimate of damages to be paid by Sweet is $315,000. In light of this case, Sweet is considering establishing a $103,400 self-insurance allowance. What entry, if any, should Sweet record to recognize this loss contingency?Becky Smith signed a note in the amount of $200,000 in favor of County Home Laons., to obtain a loan to buy a house in Marrero, Louisiana. The note endorsed "Pay to the order of ____________ without recourse County Home Loans, Inc. "Almost five years later Smith defaulted on the payment. The Federal National Mortgage Association (Fannie mae) wanted to foreclose on the house and sell it to recover the balance due. Smith argued that the words "to the order of ____________" in the endorsement made the note an incomplete order instrument and the Fannie Mae could not enforce it. What is Fannie Mae's best response to this argument?Trent is broke and needs cash immediately to pay off a debt he incurred. He visits the local pawn shop and leaves his grandfather’s watch in exchange for $100.00 cash. This is an example of what type of loan? Multiple Choice Unsecured loan Chattle loan UCC loan Secured loan The Environmental Defense Fund, an environmental watchdog group, files a lawsuit to prevent future open-pit coal mining in West Virginia. This type of lawsuit is known as a Multiple Choice wrongful-damage suit. negligence suit. citizen suit. nuisance suit. All of the following may be used as collateral for a secured transaction except Multiple Choice Future profits of a business A promissory note A patent Seeds and crops