REG 5 - R7 Bankruptcy & R8 Suretyship Flashcards Preview

CPA Exam > REG 5 - R7 Bankruptcy & R8 Suretyship > Flashcards

Flashcards in REG 5 - R7 Bankruptcy & R8 Suretyship Deck (21):
1

Order of Payment after Ch. 7 Liquidation Bankruptcy

1. Secured claims
2. Priority claims
3. Remaining assets are proportionally split among unsecured creditors that filed timely

2

Writ of Attachment

An order to the court by the sheriff to seize a person's property. It can apply to real and personal property and even when no property is owned.

3

Garnishment

An order to a third person who holds property of the debtor to turn the property over to a creditor

4

Contribution

Result in the sharing of liability on a pro rata basis among co-surieties

5

Lien

A right to keep possession of property belonging to another person until debt owed to that person is discharged.

6

Writ of Garnishment

Allows a creditor to collect money for a debtor's wages

7

Official Bond

A type of surety bond.

-Many states require public officials to obtain bonds from a surety for faithful performance of their duties.

-Obligate a surety for all losses that the public official causes by negligence or nonperformance of required duties.

8

Convertible Bond

A corporate bond that may be converted into stock

9

Debenture Bond

An unsecured corporate bond

10

Municipal Bond

A bond issued by a city or other local government

11

Securities Act of 1934

Regulates many aspects of securities after they are issued but does not apply to the bank's collection activities here because it does not appear that the bank was involved in the sale of the securities beyond making the loan to Debbie.

12

The Fair Debt Collection Practices Act

Prohibits debt collection agencies from conducting such activities with respect to consumer debts, but the Act does not apply to a creditor attempting to collect its own debts.

13

The Clayton Act

Applicable to antitrust matters in business, not to collection activities.
Prohibits the merger or acquisition of a company if the effect is to substantially lessen competition.

14

Indemnification

A type of reimbursement for cost and liabilities incurred by the agent as a result of authorized acts on behalf of the principal

15

Actual Authority

The authority that the agent reasonably believes she possesses because of the principal's communications to the agent.

16

Homestead Exemption

States can't take your home

17

Pure Conglomerate

A firm acquires a company in a completely different business (i.e. merger between firms that neither compete nor have a customer/supplier relationship).

18

Tying arrangement

Where a seller requires the buyer to purchase one product to obtain another.

19

Exclusive-dealing contract

A seller of goods requires the buyer to promise not to deal in goods of a competitor.

20

Horizontal Merger

When one competitor merges with another competitor to establish market power or restrict competition.

21

Vertical Restraints

Agreements between industry players that are on different marketing levels.