[jeff]

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[Qlad]

@ cupcake… these r the choices u gave…

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

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- 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.

A is correct bcoz…surety was on only 50% of loan…so excess of %0% must be returned…

C is correct…bcoz…he must go after the principle debtor before going to the surety…

D is correct bcoz..collateral did not pay off…so surety is liable to pay now…creditor has no option..

B is th only one that is INCORRECT…bcoz…creditor can't go to surety first…he must go to principal debtor first..

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Anonymous]

@ Qlad thanks for your input. I am wasting too much time on this question lol… I read something different in the Wiley book, so now I don't know what is correct! Do you have the Wiley text? In the 2013 version at the bottom of pg. 309, it states (1) creditor can demand payment from surety when due. Then, under (2) (a) Creditor need not attempt collection from debtor first, and also (b) Creditor need not give notice of debtor's default. I thought the debtor just had to be overdue on payment and then they can go after surety. I don't want both of us to miss a question on this!

[Anonymous]

@ Qlad thanks for your input. I am wasting too much time on this question lol… I read something different in the Wiley book, so now I don't know what is correct! Do you have the Wiley text? In the 2013 version at the bottom of pg. 309, it states (1) creditor can demand payment from surety when due. Then, under (2) (a) Creditor need not attempt collection from debtor first, and also (b) Creditor need not give notice of debtor's default. I thought the debtor just had to be overdue on payment and then they can go after surety. I don't want both of us to miss a question on this!

[Kenada]

Ok so B is right because they have to go to Dent first for payment before the Surety.

I dunno why just like Cupcake I read somewhere that they can go to either.. 🙁 I hate B Law….

FAR 05/27/14; 786/110 - Done !

[Kenada]

Ok so B is right because they have to go to Dent first for payment before the Surety.

I dunno why just like Cupcake I read somewhere that they can go to either.. 🙁 I hate B Law….

FAR 05/27/14; 786/110 - Done !

[Qlad]

@cupcake…i am not using wiley book …..but i am not sure if u recall this point or not so just leave the question for a minute and let's talk about the General rule..Becker says….there is exception to the general rule that the creditor can go to surety directly before going to the debtor….If the surety signs an “Guarantor of Collectability” agreement…then surety is liable only if all the means to collect from debtor is exhausted…

Now all the other options are correct…B is also correct but there is BUT….so best answer… what do u think??…if no one understands my logic…LOL …it is better we leave it right here…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@cupcake…i am not using wiley book …..but i am not sure if u recall this point or not so just leave the question for a minute and let's talk about the General rule..Becker says….there is exception to the general rule that the creditor can go to surety directly before going to the debtor….If the surety signs an “Guarantor of Collectability” agreement…then surety is liable only if all the means to collect from debtor is exhausted…

Now all the other options are correct…B is also correct but there is BUT….so best answer… what do u think??…if no one understands my logic…LOL …it is better we leave it right here…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

If any of u is using Becker…”Guarantor of Collectability” is on page 42 of ch 6.

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

If any of u is using Becker…”Guarantor of Collectability” is on page 42 of ch 6.

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[svwCPA72]

Qlad,

That is for a guarantor not a surety. If you look at the pass key on page 43 of ch 6 in becker, it says

“when a debtor defaults in a suretyship situation, the creditor may do any of the following in any order

1) immediately demand payment from the surety

2) immediately demand payment from the debtor

3) imediatelygo after collateral if there is any

The surety does not have the right to require the creditor to take any of the above mentioned actions. a guarantor of collectability would have the right to require a creditor to first proceed against the debtor or against available collateral.”

BEC: 80(8/10) expired, 77(10/14)!!!
FAR: 79(11/10) expired, 80(8/14)!!!
REG: 66(7/11), 70(1/12), 70(4/12), 73(10/13), 79(5/14)!!
AUD: 43(8/11), 64(10/11), 65(2/12), 69(7/12) 64(10/12), 73(5/13), 64(7/13), 84(11/13)!!! Thank you Another71 for your help!

Becker, Ninja Notes, Audio, Flashcard and Wiley test bank
Yaeger and Wiley book for Audit

I AM DONE!!!!

[svwCPA72]

Qlad,

That is for a guarantor not a surety. If you look at the pass key on page 43 of ch 6 in becker, it says

“when a debtor defaults in a suretyship situation, the creditor may do any of the following in any order

1) immediately demand payment from the surety

2) immediately demand payment from the debtor

3) imediatelygo after collateral if there is any

The surety does not have the right to require the creditor to take any of the above mentioned actions. a guarantor of collectability would have the right to require a creditor to first proceed against the debtor or against available collateral.”

BEC: 80(8/10) expired, 77(10/14)!!!
FAR: 79(11/10) expired, 80(8/14)!!!
REG: 66(7/11), 70(1/12), 70(4/12), 73(10/13), 79(5/14)!!
AUD: 43(8/11), 64(10/11), 65(2/12), 69(7/12) 64(10/12), 73(5/13), 64(7/13), 84(11/13)!!! Thank you Another71 for your help!

Becker, Ninja Notes, Audio, Flashcard and Wiley test bank
Yaeger and Wiley book for Audit

I AM DONE!!!!

[Anonymous]

Yes, that is the same thing I was thinking, svwCPA72. I think that it would be correct if it was a guranty and not a surety. An agreement for a guarantor may require that they collect from the debtor first. A surety has primary liability and a guranty has secondary liability.

[Anonymous]

Yes, that is the same thing I was thinking, svwCPA72. I think that it would be correct if it was a guranty and not a surety. An agreement for a guarantor may require that they collect from the debtor first. A surety has primary liability and a guranty has secondary liability.

[Qlad]

@cupcake, cpa 72…

You guys are right!! Thanks for this input….don't know what else to think ….why this answer is not correct….Now I feel that D is not correct…bcoz…surety signed only for 50% of the debt…creditor can not ask for the remainder from surety….I don't know…i think i will forward this question to my professor….let's see what he has to say…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Qlad]

@cupcake, cpa 72…

You guys are right!! Thanks for this input….don't know what else to think ….why this answer is not correct….Now I feel that D is not correct…bcoz…surety signed only for 50% of the debt…creditor can not ask for the remainder from surety….I don't know…i think i will forward this question to my professor….let's see what he has to say…

FAR 72,71,81 🙂
AUD 64,71, 72, 75 🙂 I'm done !!!
REG 73, 74, 74, 84 🙂
BEC 76 🙂

[Author]

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