Under which of the six Cs of credit discussed in this chapter does each of the following pieces of information belong?
The particular C of credit represented by each piece of information presented in this problem was as follows:
a. First National Bank discovers there is already a lien against the fixed assets of one of its customers asking for a loan.
b. Xron Corporation has asked for a type of loan its lender normally refuses to make.
c. John Selman has an excellent credit rating.
d. Smithe Manufacturing Company has achieved higher earnings each year for the past six years.
e. Consumers Savings Association’s auto loan officer asks a prospective customer, Harold Ikels, for his driver’s license.
f. Merchants Center National Bank is concerned about extending a loan for another year to Corrin Motors because a recession is predicted in the economy.
g. Wes Velman needs an immediate cash loan and has gotten his brother, Charles, to volunteer to cosign the note should the loan be approved.
h. ABC Finance Company checks out Mary Earl’s estimate of her monthly take-home pay with Mary’s employer, Bryan Sims Doors and Windows.
i. Hillsoro Bank and Trust would like to make a loan to Pen-Tab Oil and Gas Company but fears a long-term decline in oil and gas prices.
j. First State Bank of Jackson seeks the opinion of an expert on the economic outlook in Mexico before granting a loan to a Mexican manufacturer of auto parts.
k. The history of Membres Manufacture and Distributing Company indicates the firm has been through several recent changes of ownership and there has been a substantial shift in its principal suppliers and customers in recent years.
l. Home and Office Savings Bank has decided to review the insurance coverages maintained by its borrowing customer, Plainsman Wholesale Distributors.