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41. Julie signs a check payable to the order of Kwik Mart Stores, Inc., that does not include a date. This

check is

a.	negotiable.
b.	nonnegotiable, because it does not include a date.
c.	nonnegotiable, because it is payable to a corporation.
d.	nonnegotiable, because it is signed by the drawer.

42. Residence Painting Company has a claim against Stuart's property to satisfy a debt that takes priority over other claims against the same property. This is

a.	a lien.
b.	a violation of most state laws.
c.	a writ of attachment.
d.	a garnishment.

43. Delia refuses to pay Ewing $500 in cash on their contract to repair certain theater sets, which Ewing still possesses. Ewing's lien on the sets will terminate

a.	if Ewing continues to maintain possession.
b.	if Ewing does not file a written notice of lien within thirty days.
c.	if Ewing voluntarily surrenders possession.
d.	within thirty days.

44. A party who, on April 1, 2015, filed a financing statement covering all of the debtors inventory on April1, 2015 would have a superior interest to which of the following parties?

a. A holder of a mechanics lien whose lien was filed on March 15, 2015.

b. A judgment lien creditor who filed its judgment on April 15, 2015.

c. A holder of a purchase money security interest in after-acquired inventory

filed on March 20, 2015.

d. A purchaser in the ordinary course of the debtors business who purchased inventory on April 10, 2015.

45. General Leasing Company (GLC) buys equipment for use as inventory, borrowing $1 million from Helpful Finance Corporation (Helpful). Helpful takes back a security interest in the equipment. The next day, GLC borrows $500,000 from Interstate Bank (Interstate), and Interstate also takes back a security interest in the equipment. GLC then defaults on both loans.

Two weeks after GLC takes possession of the equipment, Helpful and Interstate file financing statements, with Interstate filing first. In that circumstance, the party with priority to the equipment is

a.	GLC only.
b.	Helpful and Interstate proportionately.
c.	Helpful only.
d.	Interstate Bank only.

46. Gary borrows $100,000 from Friendly First Federal to buy a home which secures the loan. Three years later Gary stops making payments on the loan. After Friendly First forecloses on the home and sells it to Mary, equity remains after the sale. The equity amount remaining

belongs to

a. Gary.

b. Friendly First.

c. Mary.

d. the county government where the property is located.

47. Billy Bob files a petition in bankruptcy. The initial proceeding on his petition will be in

a. a federal bankruptcy court.

b. a state bankruptcy court.

c. the highest court in the state in which Billy Bob resides.

d. a federal claims court.

48. Billy Bobs voluntary petition for bankruptcy is found to be proper. The order for relief is effective as soon as

a. Billy Bob files his petition.

b. Billy Bob posts a bond to cover the cost of the proceedings.

c. Billy Bobs creditors agree to the terms of the order for relief.

d. the trustee in bankruptcy collects and distributes the property of Billy Bobs bankruptcy estate.

49. Abelards debt to Heloise is past due. Heloise obtains a court order of garnishment to require Abelards employer, R.U. Sirius, Inc., to pay part of Abelards paycheck to her. The law

a. limits the amount that can be taken from Abelards take-home pay.

b. permits R.U. Sirius ,Inc. to fire Abelard because his wages were garnished.

c. as a practical matter, does not allow Heloise to collect the court awarded amount.

d. requires R.U. Sirius, Inc. to keep Abelard as an employee until his debt is paid.

50. The payment of Eden's debt to Carrie is guaranteed by Eden's personal property. This property is

a.	a secured party.
b.	a secured transaction.
c.	a security interest.
d.	collateral.

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