Dirk is the maker of a note,on which Erv is secondarily liable.Friendly Credit Company is the current holder of the note.Erv will be obli?gated to pay the note if
A)Dirk defaults on the note.
B)Friendly Credit breaches a transfer warranty.
C)Friendly Credit negotiates the note to a third party.
D)Friendly Credit presents the note for payment.

Question

Quizplus · Accepted Answer

Erv's liability is secondary, meaning he is only required to pay if Dirk defaults on the note. If Friendly Credit breaches a transfer warranty, negotiates the note to a third party, or presents the note for payment, it does not affect Erv's liability.

Dirk Is the Maker of a Note,on Which Erv Is