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Payne Equipment LLC. Your Name: 1. Read the case narrative. Identify the amount and type of uses outlined in the case narrative and identify the requested

Payne Equipment LLC.

Your Name:

1. Read the case narrative. Identify the amount and type of uses outlined in the case narrative and identify the requested amounts and type of funding to supporting the uses (needs).

Uses

Sources

2. Identify the commitments that the insurance company is requiring as a condition for extending the credit.

3. Who would have the first lien on the purchased building? Given your response, would you be comfortable as the account officer in meeting the new request? Explain.

 

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Payne Equipment Case

Payne Equipment Case

Criteria

Ratings

Pts

Identification of the Payne’s Sources and Uses of Funds

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6 pts

Full Marks

Students correctly identifies most of the sources and the uses of funds from the narrative.

4 pts

Partial Answer

Student response to questions but demonstrates difficulty distinguishing between the sources and uses of funds.

0 pts

No Marks

No response provided.

/ 6 pts

Insurance company requirements for making the loan.

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7 pts

Full Marks

A student identifies the support the insurance company requires from the bank to complete the transaction.

5 pts

Partial answer

A student identifies portions of the insurance requirement, but not all of the requirements.

0 pts

No Marks

No response provided.

/ 7 pts

Identification of first lien holder and recommendation

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7 pts

Full Marks

A student correctly identifies the party that has the first lien on the property and provided justification for the decision on granting or rejecting the loan request.

5 pts

Partial Answer

A student does not identify the first lien holder but provides explanation of whether he or she would grant or reject the loan request.

0 pts

No Marks

No response given.

/ 7 pts

Total Points: 0

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