• Select ALL the direct securities from the list below.

1. Inventory
2. Buildings
3. Intellectual property
4. Personal guarantees
5. Corporate guarantees

• Which of the following does NOT describe the fixed charge of security?

1. Securities with fixed charges are usually made up of non-current assets.
2. The financial institute has the legal rights to the asset.
3. The financial institute can take possession of the asset to settle the debt in case of loan default.
4. The borrower can trade its assets unless there's a default on the loan payment.

• Which of the following is typically used as floating charge security?

1. Letter of comfort
2. Land
3. Accounts receivable
4. Machinery

• If a loan is secured by a limited corporate guarantee, what will happen when the borrower is unable to repay the debt?

1. Both the company and the company owner may be pursued to fulfill the debt obligation.
2. The guarantor will cover all the liabilities of the borrower regardless of the amount.
3. The lender has the right to pursue the assets of the company within a specific dollar amount.
4. The owner of the company will be personally responsible for completing the loan obligations.

• Which of the following security assets are considered personal property? Select ALL correct answers.

1. Land
2. Bonds and equities
3. Consumer goods
4. Factories
5. Office buildings

• Which of the following may indicate low-quality inventory?

1. The inventory turnover ratio is high.
2. There is a limited shelf-life.
3. The inventory is finished goods.
4. The product is a commodity, not a specialized product.

• Which of the following is NOT an aspect to consider when evaluating the quality of machinery and equipment?

1. The life expectancy of the asset
2. The market value of the asset
3. The condition of the asset
4. The cost to maintain the asset

• Which is a typical source of information used in ascertaining the value of the real property?

1. Bills of sale
2. Invoices
3. Real estate listings
4. Purchase contracts

• It is the legal counsel's responsibility to: (Select ALL correct answers)

1. Ensure that the security is properly registered.
2. Provide accurate evaluations of the borrower's assets used as security.
3. Advise the guarantor that they will be liable to remedy the failure if the borrower fails to make a payment on time.
4. Advise the borrower that the lender can pursue all their assets in the event of default.

• Which of the following is NOT correct on security registration and documentation?

1. Common Security documentations include mortgage appraisal, assignment of leases and rents, and general security agreement.
2. The registration of the security is done differently in various jurisdictions around the world.
3. It is the borrower's responsibility to ensure that the loan security documentation is properly completed and registered.
4. It is the lender's responsibility to ensure all loans are adequately secured.