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The Smiths buy a house. They borrow 80 percent of the purchase price from the local ABC Savings and Loan.

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The Smiths buy a house. They borrow 80 percent of the purchase price from the local ABC Savings and Loan. Before they make their first payment, ABC transfers the right to receive mortgage payments to Citibank.
(a) The first group will outline what would happen if the Smiths continue to make all their payments to ABC Savings and Loan because ABC never notified them of the assignment.
(b) The second group will describe what would happen if the Smiths were notified by ABC of the assignment, but continued to make payments to ABC.
(c) A third group will determine what would happen if the Smiths fail to make any payments on the loan. Which financial institution would have the right to repossess their house?

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a Until the obligor has notice of an assignment the obligor can discharge his or her obligation by performance …View the full answer


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Business Law Text and Cases

Business Law Text and Cases

ISBN: 978-1285185248

13th edition

Authors: Kenneth Clarkson, Roger LeRoy Miller, Frank Cross

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Question Posted: June 18, 2014 09:02:26
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