A Creditor Who Has Loaned Money to a Business Has

question 127

True/False

A creditor who has loaned money to a business has a claim to some of the assets of the business until the debt is paid.

---

Definitions:

Contract Clause

A provision found in the U.S. Constitution that prohibits states from enacting laws that retroactively impair contract rights.

Interest Rate

The percentage at which interest is paid by a borrower for the use of money that they borrow from a lender.

Permissible

Allowed or permitted within a set of rules, laws, or regulations.

Exculpatory Clause

A contract provision that relieves one party of liability if damages are caused during the execution of the contract.