Default

time so as to ensure that no situation arises which may result in any kind of suspicion to the lender. Knowingly or unknowingly he may not commit any act which may constitute a default according to the conditions of the loan agreement, for it may have disastrous consequences for him. A Default means the occurrence of a situation when the Borrower is likely to commit default in the discharge of his financial obligation. i.e. the payment of interest or other dues or repayment of the loan amount to the lender as and when due in accordance with the terms and conditions of the loan agreement. Generally, the word “default” is not defined in the loan agreements. According to Oxford Dictionary, “default” means failure to act, failure to pay, not meet money calls, etc. However, a “default means any Event of Default or any…

Zimbabwe, Argentina, Cyprus, Greece, Puerto Rico have all grappled with massive economic disruption caused by debt default. The sad reality is that it will take one or larger, involuntary economic meltdowns where debts are nullified, entitlements reduced or eliminated, and derivatives reigned in to put things back in order. The first such meltdown is expected to begin before the end of 2016. Reinhart and Rogoff are right. It’s no different this time. Except that this time there might not be…

I will be examining the risks of the student loan bubble. Over the last 5 years the American federal reserve bank has increased spending on federal student loans over 1,000%. From $100 billion to over $1 trillion dollars. According to Kate Hardiman from University of Notre Dame “Economists believe the amount of federal money allocated to student loans shown in this graph is highly “unsustainable.””. With the increasingly large amount of risky student loans being given out its not going to be…

eventually defaulted on the note causing McAfee to sue Harman for payment under the guaranty. Harman had filed Chapter 7 bankruptcy after 1999 but before defaulting on the note and thus moved for summary judgment on grounds that McAfee’s claim against him had been discharged in the bankruptcy case. However, Harman had not listed the guaranty among the debts in the bankruptcy case. The legal issue being presented in this case is exceptions to dischargeable debts in bankruptcy. This case…

Finally, a piggyback loan allows the home buyer to purchase a home without paying PMI or private mortgage insurance. PMI is basically an insurance policy for the lender in case the borrower defaults on the loan. The lender however makes the borrower pay for this insurance policy either up front or as a monthly payment. Most lenders require PMI unless the home buyer has at least 20% equity in the home. Since a piggyback loan takes care of the 20% equity through another lender the first lender…

All activities of the company is done with the governance of a person called Director of the company. Director’s duties comes from common law and statue law under Corporation Act 2001.They designed so that director can provide good direction and ensure that they are working for the interest of the company. They do not use their position and information provided to them improperly. Sometime there is the situation of insolvent trading where the director of the company allow their company to incur…

history. Since expansion is followed by an economic recession, when the stock market crashed in 2000, there was a shift in dollars going away from the stock market into housing. This is what is known as the housing bubble. There was plenty of “cheap money” available for loans so naturally, people took advantage. When they saw the price of housing increase, they wanted in on the action. They took out these cheap loans to try and flip houses and make a living. The housing market peaked in 2006.…

Metropolitan defaulted on its agreement with World Wide six months later, World Wide brought suit, asserting its alleged security agreement in Metropolitan’s accounts receivable. Bank filed a counterclaim, asserting its perfected security interest in Metropolitan’s accounts receivable. Who wins? World Wide Tracers, Inc. v. Metropolitan Protection, Inc., 384 N.W.2d 442, Web 1986 Minn. Lexis 753 (Supreme Court of Minnesota) Who wins? Answer: World Wide Tracers, Inc. to Metropolitan Protection,…

Apple Watch or a Samsung Gear. With some minor changes, our team believes the company can yield much profit from selling the Fitbit Blaze. Historically, Fitbit has made customer data public by default, “encouraging social sharing and competitiveness,”(Hill, para. 3, 2011). While this action is deemed unethical by most because of the action’s cons, there are a considerable amount of pros to making customer data public by default, too. For example, many customers desire for companies to be…

As leader of a residential college at Yale University, William Zinsser describes the different amount of pressures that students struggle with in college in his essay, “College Pressures”. Because of his position at the university, he constantly noticed the students around him and the anxiety that was radiating off them. He believes that economic pressures cause students to feel anxious about paying back student loans after college. However, parental pressure leads students to make decisions…