Fowler Bros. has applied to Gibralter Bank for a $50,000 loan for its business expansion. If Fowler Bros. plans to use its account at Gibralter Bank as collateral, discuss what the bank needs to do for a security interest to attach
Attachment is a vital step in a secured transaction. For an enforceable security interest to be created, or to attach, three steps must occur: the parties must make a security agreement and either the debtor has to authenticate a security agreement describing the collateral or the secured party has to obtain possession of the collateral, the secured party must give value to obtain the security agreement, and the debtor must have rights in the collateral. Ordinarily the agreement is in writing and signed by the debtor or electronically recorded and authenticated by the debtor. In this case, however, it will be sufficient if the parties have an oral agreement since the bank, the secured party, has control of the deposit account being used for collateral. The second element, value, is the money the bank loans. The third element is that the debtor has rights in the collateral. Fowler Bros. has a legal right to its deposit account in Gibralter Bank.
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Cash and cash equivalents are considered ____________________ assets
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The refusal rate for telephone survey is estimated to be as high as:
A) 30% B) 40% C) 50% D) 60% E) 75%
Sophisticated Widgets Inc. is considering an investment project that will require an initial investment of $200,000 in net working capital and have an estimated life of 5 years. The project’s incremental sales are expected to be 300,000 units at a price of $15 per unit for the first year. The price per unit is expected to grow at the rate of inflation of 3% per year. The variable costs will represent 65% of annual revenues and the fixed costs will be $800,000 annually. The capital spending associated with the project will cost $1,900,000 and will require an additional $150,000 of shipping and installation expenses. The fixed assets associated with the project will be depreciated using the MACRS 7-year class life. After five years the project’s fixed assets can be sold for $350,000.
The WACC is 15% and the marginal tax rate is 40%. a) Calculate the initial investment, annual after-tax cash flows, and the terminal cash flow of this investment project. b) Determine the payback period, discounted payback period, NPV, PI, IRR, and MIRR of this project. Should this project be accepted? c) Perform the same sensitivity analysis as that in Exhibit 13-5, page 402 (except that you should use increments of 5% from -15% to 15%) for the following uncertain variables: number of units, variable cost as a percentage of sales, investment in net working capital, salvage value, and inflation rate. Create a sensitivity diagram that includes all of these variables.
Jeramey was in charge of typing up final project notes for his team. The first time the team completed a project, he sent the notes out the same day. Several team members stopped by Jeramey’s office to say how much they appreciated his prompt work and attention to detail. Afterward, Jeramey tried to get all notes sent to the team as soon as possible after a project was completed. What Jeramey experienced was ______.
A. classical conditioning B. operant conditioning C. social learning D. extinction