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14 Cards in this Set
- Front
- Back
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Types of bankruptcy
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Liquidation
Municipalities Reorganization Farmers Individual/Personal |
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Requirements for instrument to be negotiable
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Be in writing
Be signed by maker or drawer Be unconditional promise to order to pay to order or bearer A sum certain in money Be payable on demand or at a definite time |
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Assets that are exempt (Know at least 5)
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Homestead
Vehicle Jewelry Personal property Tools of the Trade Unmatured life insurance (no cap) Prescribed health aids (no cap) Right to receive social security alimony welfare. |
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Define Foreign Corrupt Practices Act (FCPA)
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Stops companies from bribing foreign officials to get the contract or bid
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Rules and Requirements for HIDC
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Must be a holder
Must take for value Must take in good faith Must take without notice |
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Five types of endorsements
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Blank Endorsement
Restrictive Combination Endorsement Qualified Endorsement Special Endorsement |
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Debts that cannot be discharged
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Back taxes
Money borrowed to pay federal taxes Alimony/child support All student loans DUI debts Debts on luxury goods |
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3 things you need for creating a security interest
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1. Must be written security agreement in most cases.
2. Debtor must own asset. 3. Creditor must give value S/A+Debt ownership+volume=attachment of assets |
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Real Defenses
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Forged signatures
Forged endorsements Material alterations Bankruptcy Minority Illegal, incapacity, duress Criminal activity |
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5 benefits of bankruptcy
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1. Centralized litigation
2. Stay on all pending litigation against debtor-automatic 3. Discharge debt 4. Exempt some assets 5. Uniform process |
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4 strata of creditors
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Secured + Perfected
Secured + unperfected Unsecured + unperfected Not creditor |
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5 criteria for piercing the corporate veil
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Thin Capital
Comingled Assets Personal use of assets Lack of formality Fraud/Criminal intent |
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Personal defenses
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Breach of contract
Lack/failure of consideration Fraud int he inducement Illegal, incapacity or duress Previous payment/consideration Unauthorized complication of incomplete instrument Non-delivery of instrument |
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Five transfer warranties
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Transferor entitled to get paid
No material alterations All signatures authentic No knowledge that maker/drawer is insolvent at that time No fraud associated with transaction |
