Which of the Following Is an Illustration of the Possession

question 45

Multiple Choice

Which of the following is an illustration of the possession of tangible token rule?

• A) An obligee who is owed $10,000 assigns the right of collection $5,000 each to two assignees.
• B) The right of collecting a debt is recorded in the assignee's savings account passbook.
• C) The assignee can re-assign the right only to a sub-assignee selected by the obligee.
• D) An obligee cannot assign a right to collection of more than once.

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Definitions:

Unsecured Non-priority Creditor

This type of creditor has a claim against the debtor that is not backed by collateral and does not have priority in bankruptcy proceedings.

Chapter 7 Liquidation

A process under the U.S. bankruptcy laws where a bankrupt company's assets are sold off to pay creditors.

Accounts Receivable

Money owed to a business by its customers for goods or services that have been delivered or used but not yet paid for.