[Topsya]

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?

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

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

C. 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.

D. If Jardine recovers more than half of the loan amount upon resale of the collateral, Jardine must pay the excess to Dent.

Im pretty sure the correct (incorrect in this case) would be the answer A.

Wiley tells me it’s B

Please help!

Thanks!!

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Anonymous]

I believe what makes the answer B is that the question states that this is a surety, not a guarantor of payment. A surety means that you are also primarily liable, so the creditor can go after the debtor or the surety. Exceptions to that would be if the creditor committed some type of fraud, the debtor offers to pay, or the debtor was released from the debt. On the other hand, guarantors are secondarily liable so the creditor must go after the debtor first then the guarantor.

[Anonymous]

I believe what makes the answer B is that the question states that this is a surety, not a guarantor of payment. A surety means that you are also primarily liable, so the creditor can go after the debtor or the surety. Exceptions to that would be if the creditor committed some type of fraud, the debtor offers to pay, or the debtor was released from the debt. On the other hand, guarantors are secondarily liable so the creditor must go after the debtor first then the guarantor.

[Topsya]

That is exactly right.

Wiley asks you to pick the “incorrect” answer though

“Which of the following is not correct?”

So…. would it be the answer A?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

That is exactly right.

Wiley asks you to pick the “incorrect” answer though

“Which of the following is not correct?”

So…. would it be the answer A?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

anyone….help?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

anyone….help?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Anonymous]

The question asks for which of the following is not correct? Is answer A correct? Yes, it is, so it is not incorrect, so it is not the correct answer to the question. Is answer B correct? No, so it is incorrect, so it is the right answer to the question.

[Anonymous]

The question asks for which of the following is not correct? Is answer A correct? Yes, it is, so it is not incorrect, so it is not the correct answer to the question. Is answer B correct? No, so it is incorrect, so it is the right answer to the question.

[Topsya]

” Is answer A correct? Yes, it is” – HOW SO? HOW IS THAT CORRECT?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

” Is answer A correct? Yes, it is” – HOW SO? HOW IS THAT CORRECT?

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[newnc]

B is incorrect because Jardine can't pursue payment from the surety unless Dent defaults.

BEC-75(expired), 74 5/24/14
REG-64

[newnc]

B is incorrect because Jardine can't pursue payment from the surety unless Dent defaults.

BEC-75(expired), 74 5/24/14
REG-64

[Topsya]

Yes it can.

A surety means that you are also primarily liable, so the creditor can go after the debtor or the surety

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

Yes it can.

A surety means that you are also primarily liable, so the creditor can go after the debtor or the surety

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Topsya]

in other words, Jardine can pursue payment from the surety ANY TIME not only after surety defaults.

AUD - 90
FAR - 83
BEC - 81
REG - 80
ETHICS - 100

[Author]

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