Question 1

The mortgagor of a mortgage is the lender or creditor.

Accepted Answer

A) True 
 B)False

Question 2

A state statute that establishes a ceiling or maximum rate of interest to be charged on a loan is called a usury statute.

Accepted Answer

A) True 
 B)False

Question 3

To have a valid mortgage, a valid debt must exist.

Accepted Answer

A) True 
 B)False

Question 4

A foreclosure sale generally has the effect of divesting and terminating all junior encumbrances on the real property.

Accepted Answer

A) True 
 B)False

Question 5

An endorser of a note who endorses without recourse warrants the following:

Accepted Answer

A)   The endorser will pay the note.
B)   The note has not been materially altered.
C)   The note can be collected in full from the maker.
D)   The endorser has good title to the note.
E)   (
A)   and (
C)   above.F)  (
B)   and (
D)   above.G) A) and B)
H) A) and C)

Question 6

A nonnegotiable note is not capable of being transferred.

Accepted Answer

A) True 
 B)False

Question 7

A mortgage securing a note can be transferred separately from the note.

Accepted Answer

A) True 
 B)False

Question 8

A foreclosure sale by a trustee of a deed of trust is called a deed in lieu of foreclosure.

Accepted Answer

A) True 
 B)False

Question 9

The method of transferring a note is by endorsement.

Accepted Answer

A) True 
 B)False

Question 10

A change in the terms of a guaranteed note made without the guarantor's consent generally releases the guarantor.

Accepted Answer

A) True 
 B)False

Question 11

A deed in lieu of foreclosure in most states is illegal.

Accepted Answer

A) True 
 B)False

Question 12

A note signed by both A and B on which they have joint and several liability is one on which A is responsible for one-half of the note and B is responsible for one-half of the note.

Accepted Answer

A) True 
 B)False

Question 13

A mortgage cannot be given to secure a future debt.

Accepted Answer

A) True 
 B)False

Question 14

An endorser who endorses a note without recourse warrants that all signatures on the note are genuine and authorized.

Accepted Answer

A) True 
 B)False

Question 15

A maker of a note is not released by the sale of the collateral securing the note.

Accepted Answer

A) True 
 B)False

Question 16

Nonnegotiable notes are not enforceable.

Accepted Answer

A) True 
 B)False

Question 17

An unqualified endorsement contains no warranties.

Accepted Answer

A) True 
 B)False

Question 18

A state statute that establishes a ceiling or maximum rate of interest to be charged on a loan is a(n) :

Accepted Answer

A)   usury statute.
B)   foreclosure statute.
C)   redemption statute.
D)   endorsement statute.E) B) and C)
F) A) and B)

Question 19

The penalty for usury in some states may be forfeiture of the entire loan amount.

Accepted Answer

A) True 
 B)False

Question 20

A promise to pay the debt of another person is called a guaranty.

Accepted Answer

A) True 
 B)False

Exam 10: Legal Aspects of Real Estate Finance

A mortgage securing a note can be transferred separately from the note.

Correct AnswerverifiedShow Answer

A deed in lieu of foreclosure in most states is illegal.

Correct AnswerverifiedShow Answer

A note signed by both A and B on which they have joint and several liability is one on which A is responsible for one-half of the note and B is responsible for one-half of the note.

Correct AnswerverifiedShow Answer

To have a valid mortgage, a valid debt must exist.

Correct AnswerverifiedShow Answer

A state statute that establishes a ceiling or maximum rate of interest to be charged on a loan is a(n) :

Correct AnswerverifiedShow Answer

The method of transferring a note is by endorsement.

Correct AnswerverifiedShow Answer

A mortgage cannot be given to secure a future debt.

Correct AnswerverifiedShow Answer

A promise to pay the debt of another person is called a guaranty.

Correct AnswerverifiedShow Answer

An endorser who endorses a note without recourse warrants that all signatures on the note are genuine and authorized.

Correct AnswerverifiedShow Answer

A change in the terms of a guaranteed note made without the guarantor's consent generally releases the guarantor.

Correct AnswerverifiedShow Answer

Nonnegotiable notes are not enforceable.

Correct AnswerverifiedShow Answer

The penalty for usury in some states may be forfeiture of the entire loan amount.

Correct AnswerverifiedShow Answer

An unqualified endorsement contains no warranties.

Correct AnswerverifiedShow Answer

A nonnegotiable note is not capable of being transferred.

Correct AnswerverifiedShow Answer

A foreclosure sale generally has the effect of divesting and terminating all junior encumbrances on the real property.

Correct AnswerverifiedShow Answer

A foreclosure sale by a trustee of a deed of trust is called a deed in lieu of foreclosure.

Correct AnswerverifiedShow Answer

A state statute that establishes a ceiling or maximum rate of interest to be charged on a loan is called a usury statute.

Correct AnswerverifiedShow Answer

An endorser of a note who endorses without recourse warrants the following:

Correct AnswerverifiedShow Answer

The mortgagor of a mortgage is the lender or creditor.

Correct AnswerverifiedShow Answer

A maker of a note is not released by the sale of the collateral securing the note.

Correct AnswerverifiedShow Answer

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