Are 18 Midterm #3

Front 1

Secured Transaction

Back 1

A transaction in which the payment of a debt is guaranteed by personal property owned by the debtor.

Front 2

Secured Interest

Back 2

Interest in personal property or fixtures which secures payment or performance of an obligation.

Front 3

Secured Party

Back 3

Party that holds the interest in the secured property.

Front 4

Debtor

Back 4

Party that has an obligation to secured party.

Front 5

Security Agreement

Back 5

Agreement in which the debtor gives the secured interest to the second party.

Front 6

Collateral

Back 6

The property that is subject to the security interest.

Front 7

Creation of Secured Interests

Back 7

1) The two parties create a security agreement and either a) there is a record of the security agreement or b) the secured party is in possession of the collateral.

2) The secured party must give value to get the security agreement.

3) The debtor has a right in or to the collateral.

Front 8

Purchase-Money Security Interest

Back 8

Formed when a debtor uses borrowed money from the secured party to buy the collateral.

Front 9

Perfection

Back 9

A series of legal steps a secured party takes to protect its right in the collateral from other creditors what wish to have their debts satisfied through the same collateral.

Front 10

Perfection by Fliling

Back 10

File a financing statement with a state agency.

Front 11

Financing Statement

Back 11

Should list the names and addresses of all the parties involved, a description of the collateral, and the signature of the debtor.

Front 12

Perfection by Possession

Back 12

A debtor gives a creditor the collateral to hold until the loan is paid off.

Front 13

Instruments

Back 13

Types of collateral that must be perfected through possession; such as CDs, stocks, bonds.

Front 14

Automatic Perfection

Back 14

When a creditor sells a consumer goof to a debtor on a credit basis.

Front 15

Perfection of Movable Collateral

Back 15

A security interest in collateral that has been perfected in one state will generally transfer to another state for a period of four months from the date that the property is brought into the state. The secured party may re-perfect the interest in the new state.

Front 16

After-Acquired Property

Back 16

Property acquired by the debtor after the security agreement is made.

Front 17

Proceeds

Back 17

When a debtor sells collateral, the secured party automatically has an interest in the proceeds.

Front 18

Termination Statement

Back 18

An amendment to a financing statement that provides that the debtor has no obligation to the secured party.

Front 19

Default

Back 19

When a debtor fails to make payments on a loan or declares bankruptcy.

Front 20

Disposition of the Collateral

Back 20

The secured party can sell, lease, or transfer the collateral in any commercially reasonable method.

Front 21

Retention of the Collateral

Back 21

Secured party may choose to keep the collateral in full or partial satisfaction of the debt.

Front 22

Lien

Back 22

A claim to property

Front 23

Statutory lien

Back 23

A lien that is created solely through statute, regardless of whether the debtor wishes the lien to be created.

Front 24

Mechanic's Lien

Back 24

When a person hires a worker to make improvements on real property but is later unable to pay the worker. (Ex: Contracter adds onto the house)

Front 25

Artisan's Lien

Back 25

Attaches to personal property as a result of labor provided by a third party for the benefit of such property. (Ex: Repairing a computer)

Front 26

Judicial Lien

Back 26

When a creditor, through legal action, seizes a debtor's property to satisfy the debt.

Front 27

Attachment

Back 27

A court order permitting a local court officer (sheriff) to seize a debtor's property before the entry of a final judgement in the underlying case.

Front 28

Specific Procedures for Attachment

Back 28

1) Creditor must file a lawsuit against the debtor, alleging that the debtor owes the creditor.

2) Creditor must then post a bond with the court.

3) Court holds a hearing regarding the attachment. Creditor must provide a legal basis for the attachment.

4) The court will then consider whether to issue a "right-to-attach" order.

Front 29

Writ of Execution

Back 29

A judicial order authorizing a local law officer to seize and sell any of the debtor's nonexempt real or personal property within the court's geographic jurisdiction.

Front 30

Garnishment

Back 30

A court order that satisfies a debt by seizing a debtor's property that is being held by a third party such as a bank or an employer.

Front 31

Suretyship

Back 31

A contract between a creditor and a third party who agrees to pay another person's debt.

Front 32

Guaranty

Back 32

The third party must pay the debt only after the debtor has defaulted.

Front 33

Insolvent Debtors

Back 33

Debtors who cannot pay their debts in a timely fashion.

Front 34

Bankruptcy Procedures

Back 34

1) Begin with filing of petition for bankruptcy.

2) Court orders creditor's legal actions against debtor must cease.

3) The court determines whether an order of relief should be granted.

4) The creditors meet with the debtor.

5) Some type of payment plan is created and approved.

6) The payment plan is carried out through actions of the trustee and the debtor.

7) Debts remaining after the plan is carried out are usually discharged.

Front 35

Chapter 7 relief

Back 35

Liquidation proceedings

Front 36

Liquidation

Back 36

A debtor turns over all assets to a trustee.

Front 37

Order of Relief

Back 37

Bankruptcy relief is ordered.

Front 38

Creditor's Meeting

Back 38

A meeting of all the creditors listed in the Chapter 7 required schedules for liquidation.

Front 39

Discharge

Back 39

A written federal court order signed by a bankruptcy judge stating that the debtor is immune from creditor actions to collect debts.

Front 40

Reaffirmation Agreement

Back 40

An Agreement in which the debtor agrees to pay the debt even though it could be discharged.

Front 41

Chapter 11 relief

Back 41

Reorgainzation

Front 42

Who is eligible for reorganization?

Back 42

Usually corporate debtors because they are permitted to stay in business.

Front 43

Reorganization Plans have:

Back 43

1) The classes of claims and interests in the debtor's property.

2) The treatment for each class of creditors.

3) A description of the means for execution of the agreement.

Front 44

Chapter 13 relief

Back 44

Individual Repayment Plans - Only individuals, not corporations, are permitted to file.

Front 45

Chapter 12 relief

Back 45

Family-Farmer and Family-Fisherman Plans - Must have regular annual income and be either 1) an individual or individual and a spouse or 2) a corporation or partnership.

Front 46

Fair Labor Standards Act (FLSA)

Back 46

Covers all employers engaged in interstate commerce or the production of goods for interstate commerce.

Requires that a minimum wage of a specified amount be paid to all employees in covered industries.

Mandates that employees who work more than 40 hours in a week be paid 1.5 times their regular wage (time and a half) for all hours worked in excess of 40 in that week.

Front 47

Family and Medical Leave Act (FMLA)

Back 47

Guarantees all eligible employees to 12 weeks of unpaid leave during any 12 month period for: the birth of a child, the adoption of a child, the placement of a foster child in the employee's care, the care of a seriously ill spouse, parent, or child, a serious health condition that renders the employee unable to perform any of the essential functions of their job.

Front 48

Worker's Compensation Laws

Back 48

An employee is guaranteed the right to recover for injuries that occurred on the job without having to sue their employer.

Front 49

Consolidated Omnibus Budget Reconciliation ACT (COBRA)

Back 49

Ensures that employees who lose their jobs or have their hours reduced to a level at which they are no longer eligible to receive benefits can continue receiving benefits for themselves and their dependents under the employer's policy.

Front 50

Exceptions foe COBRA Benefits:

Back 50

1) The employee is fired for gross misconduct.

2) The employer decides to eliminate benefits for all current employees.

Front 51

Employee Retirement Income Security Act (ERISA)

Back 51

Employers must provide participants with:

1) Plan information

2) Assurances that those in charge on managing plan assets have fiduciary responsibility

3) Grievance and appeals process for participants to get benefits from their plans

4) The right to sue for benefits and breaches of fiduciary duty

Front 52

Occupational Safety and Health Act (OSHA)

Back 52

Employers must "furnish to each of their employees employment free from recognized hazards that re likely to cause death or serious physical harm".

Front 53

Employment-At-Will Doctrine

Back 53

Provides that a contract of employment for an indeterminate period of time may be terminated at will by either party, at anytime, for any reason.

Front 54

Collective Bargaining

Back 54

Consists of negotiations between an employer and a group of employees so as to determine the conditions of employment.

Front 55

Strike

Back 55

A temporary, concerted withdrawal of labor.

Front 56

Title VII

Back 56

Prohibits employers from hiring, firing, or otherwise discriminating in terms and conditions of employment and prohibits segregating employees in a manner that would affect their employment opportunities on the basis of their race, color, religion,sex, or national origin.

Front 57

Disparate Treatment

Back 57

Occurs when an employee is treated differently on the basis of bing a member of a protected class.