In Jurisdiction Where a Deed of Trust Is Used to Finance

question 10

Multiple Choice

In jurisdiction where a deed of trust is used to finance real estate, there are three parties to the loan secured by the deed of trust. Which of the following is NOT one of those three parties?

• A) Borrower
• B) Trustee
• C) Holder of the note
• D) Grantor

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Definitions:

Business Judgment Rule

A legal principle that protects the decisions of corporate directors and officers, made in good faith and with reasonable diligence, from being second-guessed by courts.

Fairness Rule

The rule that requires managers to be fair to the corporation when they personally benefit from their business decisions.

Corporate Opportunity Rule

A legal doctrine preventing directors and officers of a corporation from taking a business opportunity for themselves without offering it to the corporation first.

Derivative Suit

A lawsuit brought by a corporation's shareholder on behalf of the corporation against a third party, often the corporation's executives or directors.