Ada is the maker of a note,on which Bart is secondarily liable.Cash & Credit Company (C&C) is the current holder of the note.Bart will be obli-gated to pay the note if
A)Ada defaults on the note.
B)C&C breaches a transfer warranty.
C)C&C negotiates the note to Delta Collection Agency,a third party.
D)C&C presents the note for payment.

Question

Quizplus · Accepted Answer

Bart's liability is secondary, which means that he is only obligated to pay if Ada defaults on the note. If C&C breaches a transfer warranty or negotiates the note to a third party or presents the note for payment, it does not affect Bart's obligation to pay.

Ada Is the Maker of a Note,on Which Bart Is