Asked by
bhavin patel
on Nov 28, 2024Verified
Credit Inc. lends $10,000 to Dace. Egan acts as Dace's surety. When the loan becomes due, Egan pays it in full. As a consequence, the surety gets
A) the creditor's rights in bankruptcy.
B) rights to collateral possessed by the creditor.
C) rights to judgments obtained by the creditor.
D) all of the choices.
Surety
A financial guarantee by a third party (the surety) to cover a debtor's obligations in case of default.
Rights to Collateral
Legal entitlements of a secured creditor to seize and sell the collateral if the debtor fails to fulfill the obligations of the loan or debt agreement.
Loan Due
The date by which a borrower is expected to repay the borrowed amount in full to the lender.
- Assess the legal implications associated with settling debts as a guarantor and the entitlements that emerge from these actions.
Verified Answer
BD
Learning Objectives
- Assess the legal implications associated with settling debts as a guarantor and the entitlements that emerge from these actions.