Bank president Spencer had approved significant loan amounts to Bob for the purpose of developing a shopping center. Spencer was satisfied that the land collateralizing the shopping center loan was sufficient, and Spencer was not particularly concerned about that loan. Bob, however, requested an additional loan for the purpose of starting a temporary employee agency. Bob offered to collateralize
that loan with his office equipment, but Spencer was uneasy that such collateral was insufficient. If Spencer decides to go forward with the loan involving the temporary employee agency, which of the following is true regarding his options?
a. Spencer should request a cross-default provision and also a cross-collateralization provision.
b. Spencer should only request a cross-default provision because Article 9 makes cross-collateralization provisions unenforceable.
c. Spencer should only request a cross-collateralization provision because Article 9 makes cross-default provisions unenforceable.
d. Spencer should request a guarantee from a solvent person or entity because Article 9 makes both cross-default and cross-collateralization provisions illegal.
a
You might also like to view...
All of the following are reasons why performance falls significantly short of the standard except
A. unrealistic standards. B. changing conditions. C. insufficient resources. D. insufficient management attention. E. unawareness of performance drop.
What is a transactional leader? What is a transformational leader? Explain how these terms align with the earlier definitions of manager and leader.
What will be an ideal response?
The fact that Home Depot and Lowe's both cater to the home improvement segment of the marketplace by selling similar products is an example of ________ competition.
Fill in the blank(s) with the appropriate word(s).
Which of the following is not one of the organizational factors that contribute to stress?
a. Extrinsic nature of the work b. Interpersonal relationships c. Role ambiguity and conflict d. Workload