Which of the Following Is NOT a Form of Security

question 14

Multiple Choice

Which of the following is NOT a form of security for bank loans?

• A)chattel mortgage
• B)assignment of office furniture
• C)assignment of book debts
• D)guarantee of a third party
• E)mortgage of real estate

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Definitions:

Bailments

The temporary handover of control or possession of personal property by one party, the bailor, to another, the bailee, for a specific purpose.

Bailee's Sole Benefit

Bailee's sole benefit occurs when a bailment is made for the advantage of the bailee only, with no benefit accruing to the bailor.

Gratuitous Loan

A loan where the lender does not charge interest or fees, often made among family or friends or for charitable reasons.

Bailor's Sole Benefit

Refers to a situation in a bailment where the benefit of the arrangement is exclusively for the bailor, with the bailee undertaking the responsibility without receiving any benefit.