1. List the ways in which creditors can reduce the risk of non-payment by debtors. Contrast the taking of collateral with the taking of a general security agreement
2. Explain what a purchase-money security interest (PMSI) is and describe its purpose and the conditions that must be met for a purchase-money security interest (PMSI) to be effective.
3. Describe the remedies available to a secured creditor under a credit agreement and how proceeds must be applied in these circumstances.
4. Summarize the concept of a personal guarantee, including what it is, how it operates, the rights of the guarantor, the common law defences available to the guarantor, and how those defences may be avoided by creditors.

Answer rating: 100% (QA)

Ways creditors can reduce the risk of nonpayment by debtors 1 Taking collateral Creditors can ask for collateral as security for a loan which can be seized and sold to repay the debt if the debtor def... View the full answer