[mattg2007]

Hey. I was going through the Wiley Questions and came across this one:

Dent Corporation received a loan from Jardine Finance Company. As part of the signed written agreement, Jardine required that one of the members of the board of directors of Dent Corporation act as a surety for the entire loan. The loan agreement also called for some of Dent’s real estate to be used as collateral for 50% of the loan. Which of the following is not correct?

The “correct answer” given by Wiley states:

Jardine may choose to proceed against the surety for the entire loan when the loan is due.

Isn’t the creditor able to proceed against the surety immediately?

[Anonymous]

I came across the same question. However wiley says B should be the answer. I dont understand why. The question asks which of the following is not correct. B is correct as Jardine can directly go after surety before going to Dent. Can anyone please explain. Thanks

Q: Dent Corporation received a loan from Jardine Finance Company. As part of the signed written agreement, Jardine required that one of the members of the board of directors of Dent Corporation act as a surety for the entire loan. The loan agreement also called for some of Dent’s real estate to be used as collateral for 50% of the loan. Which of the following is not correct?

Choices:

a) When the loan is due , if the collateral does not contribute to half of the loan, Jardine may seek to recover the entire remainder from the surety without resorting to the corporation.

b) Jardine may choose to proceed against the surety for the entire loan when the loan is due.

c)When the loan is due , Jardine must first seek collection of the loan from Dent before resorting to the surety or the collateral

d) If jardine recovers more than half of the loan amount upon resale of the collateral, Jardine must pay the excess to dent

Thanks

[Anonymous]

I came across the same question. However wiley says B should be the answer. I dont understand why. The question asks which of the following is not correct. B is correct as Jardine can directly go after surety before going to Dent. Can anyone please explain. Thanks

Q: Dent Corporation received a loan from Jardine Finance Company. As part of the signed written agreement, Jardine required that one of the members of the board of directors of Dent Corporation act as a surety for the entire loan. The loan agreement also called for some of Dent’s real estate to be used as collateral for 50% of the loan. Which of the following is not correct?

Choices:

a) When the loan is due , if the collateral does not contribute to half of the loan, Jardine may seek to recover the entire remainder from the surety without resorting to the corporation.

b) Jardine may choose to proceed against the surety for the entire loan when the loan is due.

c)When the loan is due , Jardine must first seek collection of the loan from Dent before resorting to the surety or the collateral

d) If jardine recovers more than half of the loan amount upon resale of the collateral, Jardine must pay the excess to dent

Thanks

[Anonymous]

The reason that B is the answer is because Jardine can't pursue payment from the surety UNLESS Dent defaults on a payment. THEN they can immediately pursue payment from the surety. That said, this is a really sucky question

[Anonymous]

The reason that B is the answer is because Jardine can't pursue payment from the surety UNLESS Dent defaults on a payment. THEN they can immediately pursue payment from the surety. That said, this is a really sucky question

[mubcl20]

I like it a lot. You know precisely what your talking about exactly where other people are coming from on this issue.

https://www.nutribullet-recipes.net/

[mubcl20]

I like it a lot. You know precisely what your talking about exactly where other people are coming from on this issue.

https://www.nutribullet-recipes.net/

[Anonymous]

Thank you so much for your answer and yes really sucky question.. so unclear!

[Anonymous]

Thank you so much for your answer and yes really sucky question.. so unclear!

[Author]

Replies