Fact Pattern 28-1A (Questions A12-A15 apply)
Dollar Value Motors asks Estimable Bank for a loan to increase its vehicle inventory.Estimable requires Flair,Dollar Value's president,sign a personal guaranty to pay the debt if Dollar Value defaults.Meanwhile,to buy a pick-up truck from Dollar Value,Gina asks Harper to co-sign a credit application.
-Refer to Fact Pattern 28-1A.If Harper signs the application only after lan?guage is included that requires Dollar Value to exhaust its legal remedies against Gina before looking to her,then Harper is
A)a surety.
B)a lienor.
C)a guarantor.
D)a creditor.

Question

Quizplus · Accepted Answer

By signing the credit application with the requirement that Dollar Value exhaust its legal remedies against Gina before looking to Harper, Harper is acting as a guarantor. A guarantor is someone who agrees to pay back a debt if the original borrower defaults, but only after the creditor has attempted to collect from the borrower first.

Fact Pattern 28-1A (Questions A12-A15 Apply)