Week 12

Week 12 Chapter 26 - Legal Aspects of Credit 1. What re the names of the parties in a financial transaction/loan? 2. Relevant Terms a. Secured b. Unsecured c. Trade Credit d. Letter of Credit 3. What are important factors to consider when providing a loan or credit to a party" a. b. c. d. 4. How can a lending party reduce or manage their risk? Identify and explain a. Application 1. 2. 3. 4. b. Security/Collateral 1. What is it? 2. Issues? 3. Best Type? 4. GSA, PPSA, PMSI 5. Remedies 1. Secured a. b. c. d. 2. Unsecured a. 3. Limitation on Rights

c. Guarantees 1. What is it? 2. Who can give it? 3. Formal Requirements? 4. Guarantee vs Indemnity? 5. Rights of Guarantors? 6. Defences for Guarantors? d. Regulation of Credit 1. Consumer debt 1. Definition 2. How is it controlled 3. Risks and problems 4. Criminal code provisions 5. Ethical considerations Chapter 27 Bankruptcy 5. What two pieces of legislation apply? a. b. 6. What is the process when a person or business experiences financial issues? a. b. c. 7. What happens if negotiation doesn't work? a. b. 8. What is a proposal? a. What act applies? b. What can it do for a debtor? c. What are the two types of proposals? d. What is the effect of making a proposal? 9. What is an arrangement? a. What act applies?

b. When can a company use this process? c. What is the procedure for protection? d. What is an arrangement e. Who is affected by an arrangement? 10. What is Debtor in Proposal Financing? a. What are the risks? b. Is there any protection for the creditor? 11. Why chose a proposal vs an arrangement 12. What are the options for Secured Creditors? a. b. c. d. 13. What are the options for an unsecured Creditor? 14. What is the effect of a Bankruptcy? a. Role/Duties of Trustee in Bankruptcy 1. 2. 3. 4. 5. 6. 7. b. How does a debtor enter Bankruptcy? 1. 2. 3. 1. TYPES a. b. c. d. 2. What is the difference between arms' length and non-arms' length transactions? c. How is money distributed under a bankruptcy? 1. 2. 3.