Which of the Following Was the Result in In Re

question 52

Multiple Choice

Which of the following was the result in In re Hydro-Action Inc.,the bankruptcy case in the text involving whether a claimant was entitled to a lien upon a conveyor belt system that it installed?

• A) The court found that a lien was foreclosed because the claimant did not qualify as a mechanic, artisan, or materialman.
• B) The court found that a lien was foreclosed because the transaction did not involve the manufacturing or repairing of an "article" or "building" as required under applicable law.
• C) The court found that a lien was foreclosed because the bankruptcy trustee had priority.
• D) The court found that a lien was available because the claimant qualified as a materialman engaged in manufacturing an article for the debtor thereby satisfying applicable law.
• E) The court found that a lien was available because under principles of equity, it would be unjust to deny the claimant a recovery.

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Definitions:

Yield To Maturity

The total return expected on a bond if held until it matures, including all interest and principal repayments.

Semiannually

Occurring twice a year or every six months.

Present Value

The current assessment of a future cash sum or cash flow streams, discounted at a defined rate of return.

Coupon

The interest payment made to bondholders, typically expressed as an annual percentage of the bond's face value.