Asked by Bruno Vieira on Jul 27, 2024
Verified
Hayley loans David $20,000 by taking a mortgage on David's land on February 1,but does not record a mortgage.On April 1,Gavin loans David $15,000 taking a mortgage on the same land and records the mortgage on April 4.Hayley then records her mortgage on April 8.Discuss the proceedings in case David is unable to pay either of the lenders.
Records Mortgage
The formal documentation of a mortgage loan agreement that is filed with a local government office, making it a public record.
- Understand the legal structure and hierarchy regulations within the Uniform Commercial Code (UCC) pertaining to disputes over security interests.
Verified Answer
ZK
Zybrea KnightAug 02, 2024
Final Answer :
In case David is unable to repay the loans by Hayley and Gavin,the mortgage will be foreclosed.Gavin has priority,having first recorded a mortgage on April 4,provided he is unaware about Hayley's mortgage and has recorded his mortgage properly.However,failure to record the first mortgage does not remove the obligation of David to Hayley.The debt is simply an unsecured one.
Learning Objectives
- Understand the legal structure and hierarchy regulations within the Uniform Commercial Code (UCC) pertaining to disputes over security interests.
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