Where a Person Owns a Half Interest in a House

question 38

Multiple Choice

Where a person owns a half interest in a house valued at $200,000 and has insurance on that property in the amount of $400,000, if the house burns down, causing a loss of $100,000, how much will that person collect?

• A) $50,000
• B) $100,000
• C) $200,000
• D) $400,000
• E) Nothing

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Definitions:

Financing Statement

A form filed to give public notice of a secured party's interest in the debtor's collateral, facilitating the priority of claims in case of default.

Secured Interests

Interests in personal property or fixtures that secure payment or performance of an obligation, often seen in lending and financing agreements.

Take Possession

Take possession refers to the act of assuming physical control or ownership of a piece of property or asset.

Collateral

Assets promised as security for the repayment of a loan, which can be seized by the lender if the borrower fails to repay according to the terms of the loan agreement.