Recent Lessons

Show all results for ""

Feature Overview

Ace your exams with our all-in-one platform for creating and sharing quizzes and tests.

Quizzes

Create quizzes and tests automatically from your content using AI.

Flashcards

Automatically turn your notes into digital flashcards.

Share, Export & Embed

Share with classmates or export to Excel and your learning management system.

Stats & Reporting

Auto-grading quizzes and tests with detailed stats and reports.

Mobile Apps

The smarter way to study – wherever you are.

Pricing

Search...

10 Questions

0 Views

5. Pre-Test M/C

Choose a study mode

Play Quiz

Study Flashcards

Spaced Repetition

Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the purpose of a subordination clause in a security instrument for land purchase loans?

To prevent developers from taking out additional loans for development

To reduce the interest rates on land purchase loans

To provide higher lien priority to the security instrument for construction loans (correct)

To ensure that the developer can sell individual lots unencumbered by the lien

What does a partial release clause allow developers to do in relation to land purchase loans?

Skip making repayments on the principal amount

Extend the loan term indefinitely

Increase the interest rates on the land purchase loans

Release individual lots from the lien once specific amounts of principal have been repaid (correct)

In a deed of trust, what is the role of the trustee?

To hold legal title to the property until the loan is fully repaid (correct)

To assess the creditworthiness of the borrower

To purchase the property on behalf of the borrower

To manage and invest the funds received from the lender

Why do lenders generally require construction loans to have a subordination clause?

To reduce the risk associated with construction loans Signup and view all the answers

What benefit does a partial release clause provide to developers when selling individual lots?

Enables lots to be released from the lien once specific principal amounts are repaid Signup and view all the answers

What are the payments made up of under a straight note?

Principal and interest Signup and view all the answers

Which element is not required in a mortgage?

An identification of the promissory note Signup and view all the answers

What is a requirement to be a holder in due course of a negotiable instrument?

Must have notice of any defenses against payment of the instrument Signup and view all the answers

Which statement regarding security instruments is not true?

A lender cannot enforce a promissory note without a security instrument Signup and view all the answers

What role does the trustee play in a deed of trust?

Both B and C Signup and view all the answers