Finance
A Nebraska agricultural borrower secures a loan with their crop and equipment. This is called a:
AReal estate mortgage
BUCC-1 security interest filing✓ Correct
CPurchase money mortgage
DAgricultural homestead lien
Explanation
Loans secured by personal property (crops, equipment, livestock) are governed by Article 9 of the Uniform Commercial Code. The lender perfects their security interest by filing a UCC-1 financing statement, not a mortgage.
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Key Terms to Know
Lien
A financial claim against a property that serves as security for a debt or obligation, giving the creditor the right to foreclose if unpaid.
Debt-to-Income Ratio (DTI)A lender's measure of a borrower's monthly debt obligations relative to their gross monthly income, used to evaluate loan eligibility.
Discount PointsPrepaid interest paid to a lender at closing to reduce the mortgage interest rate, with each point equal to 1% of the loan amount.
Private Mortgage Insurance (PMI)Insurance required by lenders on conventional loans with less than 20% down payment, protecting the lender — not the borrower — against default.
State-Specific Concepts
Homestead Exemption
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