a short-term loan.

use the IRAC method when draftin" rel="nofollow">ing your answers. Read each question carefully and thoughtfully. All the in" rel="nofollow">information that you need to draft a quality answer can be found in" rel="nofollow">in your textbook. Rashi is a student at State University. In need of funds to pay for tuition and books, Rashi asks Tiempo Loans, Inc., for a short-term loan. The lender agrees to make a loan if Rashi will have someone who is fin" rel="nofollow">inancially responsible guarantee the loan payments. Umberto, a well-known busin" rel="nofollow">inessperson and a friend of Rashi’s family, calls Tiempo and agrees to pay the loan if Rashi cannot. Because of Umberto’s reputation, the loan is made. Rashi is makin" rel="nofollow">ing the payments, but because of illness he is unable to work for one month. He asks Tiempo to extend the loan for three months. The lender agrees, raisin" rel="nofollow">ing the in" rel="nofollow">interest rate for the extended period. Umberto is not notified of the extension (and thus does not consent to it). One month later, Rashi drops out of school. All attempts to collect the remain" rel="nofollow">inder of the loan from Rashi fail. Can Tiempo assert a claim again" rel="nofollow">inst Umberto on the debt? The roof in" rel="nofollow">in Rosalyn’s house sprin" rel="nofollow">ings a leak. She contracts with Shelter Roofin" rel="nofollow">ing & Restoration Company to repair the roof and fix the dam­age to the house. Rosalyn pays 10 percent of the price in" rel="nofollow">in advance. Shelter Roofin" rel="nofollow">ing does the work, but Rosalyn refuses to pay the rest of the price. What can Shelter Roofin" rel="nofollow">ing do, and how is it done? Town Loan Center agrees to loan Sara $1,500, acceptin" rel="nofollow">ing as collateral her car. They put their agreement in" rel="nofollow">in writin" rel="nofollow">ing and sign it. Sara keeps possession of the car. Does Town Loan have an enforceable security in" rel="nofollow">interest? How can Town Loan let other creditors know of its in" rel="nofollow">interest in" rel="nofollow">in the car? Digital Devices is a retail seller of entertain" rel="nofollow">inment media. Digital Devices sells a 3D HD TV set to Edmund. Edmund cannot pay cash, so he signs a security agreement, payin" rel="nofollow">ing a certain" rel="nofollow">in amount down and agreein" rel="nofollow">ing to pay the balance in" rel="nofollow">in twelve equal in" rel="nofollow">installments. The security agreement gives Digital Devices a security in" rel="nofollow">interest in" rel="nofollow">in the set. Edmund makes six payments on time then goes in" rel="nofollow">into default because of unexpected fin" rel="nofollow">inancial problems. Digital Devices repossesses the set. Can the creditor keep it in" rel="nofollow">in full satisfaction of the debt? Explain" rel="nofollow">in. Federal Bank is a secured party on a $50,000 loan to Gigi, who owns Home HealthCare, an assisted livin" rel="nofollow">ing facility. When Gigi experiences fin" rel="nofollow">inancial difficulty, creditors other than Federal Bank petition her in" rel="nofollow">into in" rel="nofollow">involuntary bankruptcy. The value of the secured collateral has substantially decreased in" rel="nofollow">in value. On its sale, the debt to Federal Bank is reduced to $25,000. Gigi’s estate consists of $100,000 in" rel="nofollow">in exempt assets and $20,000 in" rel="nofollow">in nonexempt assets. After the bankruptcy costs and back wages to Gigi’s employees are paid, nothin" rel="nofollow">ing is left for unsecured creditors. Gigi receives a discharge in" rel="nofollow">in bankruptcy. Later she decides to go back in" rel="nofollow">into busin" rel="nofollow">iness. By sellin" rel="nofollow">ing a few exempt assets and gettin" rel="nofollow">ing a small loan, she is able to buy Indulgence, a small, profitable nightclub. Gigi goes to Federal Bank for the loan. The bank claims that the balance of its secured debt was not discharged in" rel="nofollow">in Gigi’s bankruptcy. She signs an agreement to pay Federal Bank the $25,000, and the bank makes a new unsecured loan to her. Is Federal Bank correct that the balance of its secured debt was not discharged in" rel="nofollow">in bankruptcy? What is the legal effect of Gigi’s agreement to pay the bank $25,000 after the discharge in" rel="nofollow">in bankruptcy?