The Difference Between Mortgages Payable and Notes Payable Is That

question 137

True/False

The difference between mortgages payable and notes payable is that notes payable are always secured by specific assets.

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Definitions:

Security Interest

A legal right or claim on assets granted to creditors to secure loan repayments, typically collateralized by the asset itself.

Perfected

Refers to the completion of all necessary legal steps or procedures to enforce rights, often used in the context of securing interests in collateral under law.

Possession

The act of having physical control over property or goods, with or without the right to own them.

Prescribed Hold-Back

A specific amount of money withheld from a contractor to ensure all obligations are met before full payment.