1. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-1 Chapter 13 Credit, Secured Transactions, and Bankruptcy

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-2 Credit Transactions Creditor – lender in a credit transaction Debtor – borrower in a credit transaction Unsecured Credit-does not require collateral to protect payment of debt Secured Credit-requires collateral to secure payment of loan

3. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-3 Security Interest in Real Property Mortgage –real property used as collateral Mortgagor-owner/debtor Mortgagee-creditor Recording statutes

4. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-4 Secured Transactions in Personal Property Personal property used as security Revised Article 9 of the UCC Governs Secured Transactions in personal property Security Agreement Floating Lien concept Perfecting a Security Interest

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-5 Secured Transactions in Personal Property Buyer in Ordinary course of business Default and Remedies Repossession Deficiency judgment Artisan’s lien

6. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-6 Priority of Claims Secured vs. Unsecured Competing unperfected security interests Perfected vs. Unperfected claims Competing perfected security interests

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-7 E-Secured Transactions Financing statements to perfect a security interest in personal property may be in electronic form and filed and stored as an electronic record

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-8 Surety and Guaranty Surety arrangement -Third party promise to be primarily liable Guaranty arrangement – third party promise to be secondarily liable

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-9 Bankruptcy Courts and Procedure Bankruptcy Abuse Prevention and Consumer Protection Act of 2005 Types of Bankruptcy Bankruptcy Procedure Automatic Stay Bankruptcy Estate

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-10 Types of Bankruptcy Chapter 7 – Liquidation Chapter 11 – Reorganization Chapter 12 – Adjustment of Debts of family farmer or fisherman Chapter 13 – Adjustment of Debts of Individual

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-11 Personal Bankruptcy Chapter 7 – Liquidation and Discharge Debtors nonexempt property sold for cash Termination of legal duty to pay debts Median Income Test Means Test Chapter 13-Adjustment of Debts Plan of Payment Discharge

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-12 Business Reorganization Bankruptcy Chapter 11 – Reorganization Plan of Reorganization Executory Contract or Unexpired Lease Automatic Stay Discharge Chapter 12 – Family Farmer and Family Fisherman Bankruptcy

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall. 13-13