Need some help with this one Plz with references! thank you?

Question

Your company must purchase a larger building to accommodate its growing workforce. Your company is borrowing money from a bank to complete the transaction. The vice president in charge of the transaction does not understand what type of contract the company is entering into with the bank, or what most of the legal terminology—like mortgagor and mortgagee—means. Your supervisor wants you to prepare an outline to assist the vice president. Specifically, your supervisor wants you to explain secured and unsecured debt, a mortgage agreement and the parties to such an agreement, and what occurs if there is a default on a mortgage agreement.

Answer 1

I think your VP would know this by now. After all, you don't get to be VP without knowing stuff like this. And if he doesn't why is he handling the transaction?