Unit quiz: Getting the money out and getting it back: the settlement sheet, the debit calendar, the payoff and release, the assignment, and the renewal arithmetic

Check understanding, separately from reading

5 questions · 80% to pass · no timer. This quiz checks the lessons in this unit. These authored questions assess recognition and application of the taught distinctions, not professional qualification. You may review the lessons and retry. Repeat attempts reuse the question bank; a remembered answer is not proof of transfer to a new situation.

Saving a lesson records reading only. Previous lesson completions have not been converted into passing scores. You can continue reading without a pass; the assessment remains unpassed.

Question 1

A millwork shop is approved for $150,000 at a 1.34 factor. The settlement sheet shows a 3.0 percent origination fee, a 2.0 percent broker fee, a $38,400 payoff of the prior position, $212.05 of prior per diem, a $95 filing fee and a 5.0 percent escrow held for thirty days. The owner asks when the $150,000 will arrive. What do you tell him, and what is the cost per $100 of the money he can actually use?The wire is $96,292.95, not $150,000: the itemised cash deductions total $46,207.05 and the $7,500 escrow is withheld but remains his money, so total available is $103,792.95; repayment is $201,000.00, which is $52.96 per $100 of net wire, not the $34.00 per $100 of the approved amount.The wire is $150,000 and the fees are netted out of the repayment schedule instead, so the owner receives the full approved amount and the cost is the $34.00 per $100 that the 1.34 factor implies.

Question 2

An auto glass merchant on a $205,920.00 obligation with forty weekly debits of $5,148.00 has the week 11 debit returned R01 and the week 12 debit returned R01 again. The contract adds a $50 return fee and a 5 percent late charge and treats two returned debits in ninety days as an event of default. What may be re-presented, what is added to the balance, and what does the catch-up debit look like?Both debits can be re-presented as many times as the funder likes until they clear, and the fees are taken out of the next scheduled debit without changing the balance, so the catch-up debit stays at $5,148.00.An insufficient-funds entry may be re-presented no more than twice, so the two returned debits can be attempted again; two return fees of $50.00 each plus a late charge of $257.40 add $357.40 to the balance, which at the 1.32 factor becomes $471.77 of extra repayment, and the catch-up debit is $5,505.40 rather than $5,148.00.

Question 3

A print shop owes $46,200.00 on a $85,800.00 obligation and receives a payoff quote of $46,402.62 dated 3 November, good through 10 November, accruing $18.42 a day. The wire leaves on 12 November. The funder's servicer says the file is closed. What is wrong with that sentence and what does the merchant still owe?The wire is two days past the good-through date, so the payoff is $46,568.40 and the merchant is short $165.78, of which $36.84 accrued after that date; because an obligation remains, the secured party's duty to send a termination statement within twenty days of an authenticated demand is not triggered, and the financing statement stays effective until the residual and the accrued per diem are cleared.The quote was issued against a live balance and the difference of $165.78 is rounding, so the servicer may treat the account as paid and file the termination statement on the strength of the 10 November quote.

Question 4

A pharmacy's $78,000.00 a month of card settlements is assigned, and a 45 percent participant sends the merchant a notification instructing it to pay $35,100.00 of each month directly to the participant and $42,900.00 to the servicer. The merchant keeps paying the servicer in full because that is where it has always paid. Who is discharged, and what is the exposure after three months?The merchant is discharged by continuing to pay the servicer, because a partial assignee cannot redirect more than its share and the servicer remains the party of record for collection.The merchant is discharged by paying the servicer only if the notification is ineffective; where the notification reasonably identifies the rights assigned and instructs payment of the full instalment to one assignee, the merchant is exposed on the participant's share, and three months of $35,100.00 is $105,300.00 that can be demanded twice.

Question 5

A logistics company has paid 26 of 40 weekly debits of $4,140.00 on a $165,600.00 obligation and is offered a renewal: $60,000.00 of new money, a 3 percent origination fee taken out of the new money, and the $57,960.00 balance rolled in at a 1.36 factor over 52 weeks. The broker presents it as a 1.36 deal that lowers the weekly payment. What is the price of the new money and what is the weekly payment?The funded base is $117,960.00, total repayment is $160,425.60 and the weekly payment is $3,085.11; the merchant receives $58,200.00 of new cash and takes on $102,465.60 of additional obligation, which is $176.06 per $100 of new money rather than the $36.00 per $100 that 1.36 implies.The deal is priced at 1.36, so the new money costs $36.00 per $100 and the lower weekly payment of $3,085.11 is the merchant's real benefit, since the old balance was going to be repaid anyway.

Continuing does not mark this assessment passed.

Progress stays in this browser, on this device, not an account or cloud backup. Clearing browser data removes it. Visits never count as study. Previous untimed legacy completions are not invented as study days.