Lakeside Bank Holds a $100,000 Note Secured by a Building

question 36

Multiple Choice

Lakeside Bank holds a $100,000 note secured by a building owned by Fly-By-Night Manufacturing, which has filed for bankruptcy under Chapter 7 of the Bankruptcy Code.If the property has a book value of $120,000 and a fair market value of $90,000, what is the best way to describe the note held by Second City Bank? The bank has a(n)

• A)​secured claim of $100,000.
• B)​unsecured claim of $100,000.
• C)​secured claim of $90,000 and an unsecured claim of $10,000.
• D)​secured claim of $100,000 and an unsecured claim of $20,000.

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Definitions:

Adler

Alfred Adler, a psychologist and founder of Individual Psychology, which emphasizes the uniqueness of the individual and the importance of societal factors in personality development.

Thematic Apperception Test

A projective psychological test that involves creating stories about ambiguous scenes, used to explore a person's emotions and personality.

Ambiguous Pictures

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Hindsight Bias

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