Fact Pattern 28-1A
Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors.
-Refer to Fact Pattern 28-1A. If Edie signs the application only after lan?guage is included that requires Finest to exhaust its legal remedies against Dina before looking to her, then Edie is
A) a guarantor and a surety.
B) a guarantor only.
C) a surety only.
D) neither a guarantor nor a surety.

Question

Fact Pattern 28-1A 
Dina asks Edie to co-sign a credit application so that she can borrow money and buy a truck from Finest Quality Motors.
-Refer to Fact Pattern 28-1A. If Edie signs the application only after lan?guage is included that requires Finest to exhaust its legal remedies against Dina before looking to her, then Edie is
A) a guarantor and a surety.
B) a guarantor only.
C) a surety only.
D) neither a guarantor nor a surety.

Quizplus · Accepted Answer

Edie is a guarantor only because she has agreed to be responsible for the debt only after the creditor has exhausted all legal remedies against Dina, which is a characteristic of a guarantor, not a surety.