CHAPTER 39—SECURITY DEVICES Key
1. Suretyship given for someone who handles another’s money is known as _____.
2. A party who undertakes to be responsible for another is a _____.
3. Which of the following best describes the right to indemnity?
4. A guarantor’s right to have a creditor compel the payment of debt is known as the right of _____.
5. Discharge of a surety occurs:
6. Which of the following is a requirement of a security agreement?
7. Which of the following is true of a financial statement?
8. _____ are items used or bought primarily for personal, family, or household purposes.
10. A party who has primary liability is the creditor.
11. A contract of guaranty must be in writing.
12. A surety or guarantor may call on the creditor to proceed to compel the payment of the debt.
13. If a creditor extends the time of the debt without the consent of the surety, for a consideration, the surety is
discharged from further liability.
14. If a creditor damages collateral security given to secure a debt, surety is not discharged.
15. A buyer has the right to transfer the collateral and require a determination of the amount owed.
16. When the rights of a seller to the collateral are inferior to those of third persons, the seller has a perfected
security interest.
17. When sellers retain the right to repossess the items sold if the buyers breach the sales contracts, the
transactions are unsecured credit sales.
18. A security agreement contains the terms of payment and names of the parties.
19. Articles purchased with the intention of reselling or leasing them are called consumer goods.
20. Explain the right of subrogation of a surety.