The law firm is in the process ofpurchasing a number of new company desktop computers, printers, notebook computers and servers. Your firm is planning to borrow money from a bank to complete the transaction. The IT manager who is in charge of the transaction does not understand what type of contract the company is entering into with the bank, or what most of the legal terminology means. Your supervising partner wants you to explain secured and unsecured bebt and what occurs if the firm defaults on the agreements to purchase the technology equipment.
Secured transactions are those that are secured by some kind of collateral. This means that the loan or the contract is secured by an item that can be taken away if a default occurs by the person or entity who executed the contract. Many times these types of contracts include contracts for vehicles where the contract is secured by the vehicle and real estate where the mortgage is secured by the property. Furthermore, many appliance stores who give out ...
Bankruptcy law and secured transactions