A clause in a loan document that releases a borrower from personal liability and makes the property the sole source of security for a loan is referred to as a clause: Ch12 O a. property O b. lockout O c. recourse d. nonrecourse

A(n) _________ is a lender, seller, or any other person in whose favor there is a security interest. a. unsecured creditor b. general creditor c. consumer creditor d. secured creditor

A contingent liability: Is always of a specific amount O Is a potential obligation that depends on a future event arising out of a past transaction or event O Is an obligation not requiring future payment O Is an obligation arising from the purchase of goods or services on credit O Is an obligation arising from a future event

What is the correct treatment of advance payment made by the lessee to the lessor? A. None of the above B. If the advance payment representing loan is intended to be applied to unpaid rent, the amount is part of the debtor/lessor’s taxable income at the time of receipt of said amount. C. If the advance payment represents security deposit, the amount is part of the lessor’s taxable income. D. If the advance payment represents loan, the amount is part of the lessor’s taxable income.