INSTRUCTIONS: Choose the Word or Phrase in [ ] Which

question 51

Multiple Choice

INSTRUCTIONS: Choose the word or phrase in [ ] which will correctly complete the statement. Select
-You made an $900 mortgage payment.The interest on the mortgage for this month was $850.You have just experienced [negative | positive] amortization.

• A)for the first item
• B)for the second item
• C)if neither item will correctly complete the

---

Definitions:

Principal Debtor

The primary individual or entity legally obligated to repay a debt or loan.

Capacity

In legal context, it refers to the ability of an individual to understand the nature and effects of one's actions, including the ability to make contracts or execute wills.

Unsecured Credit

refers to credit extended without any collateral backing, based solely on the borrower's creditworthiness and promise to repay.

Foreclosure

The legal process by which a lender takes possession of a property used as collateral for a loan due to failure of the borrower to meet the repayment terms.