David Operated a Small Delivery Business

question 48

Essay

David operated a small delivery business. He approached the Empire Bank for money to buy a truck to be used in the business. The bank was willing to loan David the money and took a chattel mortgage over the truck. As further security in the event that David defaulted on the mortgage, the bank required his wife to sign a promissory note for the full amount of the mortgage. After experiencing some financial difficulty, David defaulted on the mortgage and the Empire Bank took possession of the truck and sold it pursuant to the chattel mortgage. The passage of sale was insufficient to cover the full amount of the loan and the bank sued David's wife for the remainder owing on the basis of the promissory note. Discuss the rights and duties of the bank and David's wife, and render a decision.

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Definitions:

Pituitary Gland

A small, pea-sized gland located at the base of the brain, responsible for the production and regulation of many hormones that control various bodily functions.

Hippocampus

The hippocampus is a brain structure involved in the formation of new memories and is also associated with learning and emotions.

Fornix

A C-shaped structure in the brain, part of the limbic system, that acts as a major output tract of the hippocampus.

Amygdala

A part of the brain involved in processing emotions, including fear and pleasure.