The Priorities of Corporate Security Are Usually

question 57

Multiple Choice

The priorities of corporate security are usually

• A)fixed charges in preference over floating charges,debentures in preference over mortgage bonds.
• B)fixed charges in preference over floating charges,mortgage bonds in preference over debentures.
• C)floating charges in preference over fixed charges,debentures in preference over mortgage bonds.
• D)floating charges in preference over fixed charges,mortgage bonds in preference over debentures.
• E)None of these.

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Definitions:

Special

Distinguished by a unique or particular quality, purpose, or condition from what is ordinary or common.

Overdue

A status indicating that a payment or obligation was not fulfilled or completed by its due date.

Holder In Due Course

A party possessing a negotiable instrument, such as a check, who took the instrument in good faith, for value, and without notice of any defect or claim against it.

Cashed Check

A check that has been presented to a bank or financial institution and exchanged for the equivalent amount in cash.