A Note Is Dishonored When the Maker of the Note

question 90

True/False

A note is dishonored when the maker of the note fails to pay the note at maturity.

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Definitions:

Involuntary Bankruptcy

A legal process initiated by creditors requesting the court to declare a debtor bankrupt, forcing the debtor to liquidate assets to pay off debts.

Chapter 7

A provision of the Bankruptcy Code providing for "liquidation," which involves the sale of a debtor's non-exempt property and the distribution of the proceeds to creditors.

Permanent Trustee

A trustee appointed to manage and administer a trust indefinitely until the trust’s objectives are fulfilled or the trust is legally dissolved.

Chapter 7

A provision under the U.S. Bankruptcy Code allowing for liquidation of a debtor's assets to pay off creditors.