Eric borrows $50,000.00 from his cousin Mallard, a fool is thee was ever one because Mallard does not required any security - not even a mortgage. Eric signs the Promissory Note on April 1, 2016 and the Note Provides that he will repay the entire amount with the interest at 5% on or before December 31, 2016. Eric then borrows $25,000.00 from his brother, Mr. Gullible, and his brother does not require a mortgage either. Eric signs the Promissory Note to his brother on May 1, 2016, and the Note provides that he will repay the entire amount on or before December 31, 2016. Believe it or not, Eric starts to run out of money. He then borrows $10,000.00 from his mother. His mother asked you what do you do and you (having been awake during class) insist that Eric sign a Note and a Mortgage. The Mortgage is promptly recorded on June 1, 2016. Mr. Gullible, sensing trouble, has Eric sign a mortgage to secure the $25,000.00 loan on July 1, 2016. The mortgage is recorded on July 2, 2016. Mallard just keeps quacking away. Eric, never shy, then goes out and buys a car. It's a very nice Maserati. He pays $10,000.00 down and signs a Note for $90,000.00. The collateral is the car.

You guessed it. Eric goes broke, heads for Montgomery, Alabama and everyone is left holding the bag:

1. What are Mallard's rights? Your advice, if you were Mallard's attorney?
2. What are Mr. Gullible's rights?
3. What are Mom's rights?
4. What are the Maserati's dealer's rights?