In Making a Proposal Under the Bankruptcy and Insolvency Act,a

question 4

Multiple Choice

In making a proposal under the Bankruptcy and Insolvency Act,a composition would be most attractive to a creditor where

• A)the debtor is generally able to pay its debts as they come due.
• B)the creditor will receive more if the debtor is permitted to continue to operate under the proposal,than if the debtor is forced into bankruptcy.
• C)the debtor does not want to part with voting control over the company.
• D)the debtor cannot be trusted to pay its debts.
• E)the debtor has given a security interest to the creditor in assets that,if sold,would yield proceeds exceeding the amount of the debt.

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Definitions:

Reversioner

An individual or entity entitled to reclaim possession of property after a certain condition has been fulfilled or a specific period has elapsed.

Expropriation

The forceful taking of land by a government or government agency for public purposes.

Rapid Transit

A type of high-speed urban public transportation system, often involving subways, elevated trains, or metros.

Dominant Tenement

In property law, this refers to the property that benefits from an easement over another piece of land, known as the servient tenement.