Fact Pattern 28-1B
Chocolate! Chocolate! Corporation is a new company that needs to borrow money to meet its payroll.Dayna,president and owner of Chocolate! Chocolate!,asks Evermore Credit Union to loan the funds to Chocolate! Chocolate!
-Refer to Fact Pattern 28-1B.If Evermore insists that Dayna sign the loan applica?tion,making her personally liable for payment whether or not Chocolate! Chocolate! defaults,Dayna will be
A)a surety.
B)a lienor.
C)a garnishee.
D)a guarantor.

Question

Fact Pattern 28-1B 
Chocolate! Chocolate! Corporation is a new company that needs to borrow money to meet its payroll.Dayna,president and owner of Chocolate! Chocolate!,asks Evermore Credit Union to loan the funds to Chocolate! Chocolate!
-Refer to Fact Pattern 28-1B.If Evermore insists that Dayna sign the loan applica?tion,making her personally liable for payment whether or not Chocolate! Chocolate! defaults,Dayna will be
A)a surety.
B)a lienor.
C)a garnishee.
D)a guarantor.

Quizplus · Accepted Answer

Dayna would be a surety because she is agreeing to be personally liable for the loan, ensuring payment if Chocolate! Chocolate! defaults.