Question: Peter Diamond owed Carter $500,000 secured by a first mortgage on Diamonds plant and land. Stephens was a surety on this obligation in the amount

Peter Diamond owed Carter $500,000 secured by a first mortgage on Diamond’s plant and land. Stephens was a surety on this obligation in the amount of $250,000. After Diamond defaulted on the debt, Carter demanded and received payment of $250,000 from Stephens. Carter then foreclosed upon the mortgage and sold the property for $375,000. What rights, if any, does Stephens have in the proceeds from the sale of the property?

Step by Step Solution

★★★★★

3.46 Rating (162 Votes )

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

Stephens may recover 125000 from the proceeds Upon the creditors full payment of ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Document Format (1 attachment)

110-L-B-L-D-C-R (14).docx

120 KBs Word File

Students Have Also Explored These Related Business Law Questions!

1) Show entries in general journal form for the following transactions of Bothwell Regional Hospital, a not-for-profit hospital.1) For the month just ended the hospital received in cash $8,000 from...

First National Bank certified Smith's check in the amount of $29. After certification, Smith altered the check so that it read $2,900. He presented the check to a merchant in payment for goods. The...

Does age make a difference in the amount of savings a worker feels is needed to be secure at retirement? A study by Comm Sciences for Transamerica Asset Management found that .24 of workers in the...

Peter Diamond owed Carter $500,000 secured by a first mortgage on Diamonds plant and land. Stephens was a surety on this obligation in the amount of $250,000. After Diamond defaulted on the debt,...

You hired a contractor to build a new swimming pool in your backyard. He does all the necessary work and creates a beautiful pool. But at the end of the project, you are not satisfied and refuse to...

Question 2 Mr Len Philander (otherwise known as Len) is 64 years of age. He is married and has two children, a son, and a daughter, both of whom are over 25 years of age. His son is a South African...

THE COMPANY: Aylmer Industries Inc. (Aylmer) has been in business since 2017. Since Aylmer is a publicly traded company, it follows IFRS. Aylmer posted accounting transactions throughout the year....

Mr Len Philander (otherwise known as Len) is 64 years of age. He is married and has two children, a son, and a daughter, both of whom are over 25 years of age. His son is a South African resident,...

2.1 REQUIRED Show the effect of the following transactions of Havenside Stores on the Accounting equation. Use + to denote an increase, to denote a decrease and 0 to denote no change to the elements...

Mr Len Philander (otherwise known as Len) is 64 years of age. He is married and has two children, a son, and a daughter, both of whom are over 25 years of age. His son is a South African resident,...

Find the flow and concentration balance of the following system (. Qtop Q in = 1.5 MGD, Cin = 100 mg/1 Qtop = 0.5 MGD, Ctop= 150 mg/1 Qout = ? Cout= 10 mg/l Qrecycle = 0.5 MGD, Cr = ? Qw=0.3 MGD, Cr=...

For the regression model for the wire bond pull strength data in Exercise 12-8. (a) Plot the residuals versus and versus the regressors used in the model. What information do these plots provide? (b)...

3 . [ - / 1 Points ] Evaluate the limit using the appropriate properties of limits . ( If the limit is infinite, enter ' ' or ' - ' , as lim x 6 x 2 - 3 5 x 2 x - 3 Last saved Wednesday, August 2 0 ,...

Ghostbusters, Inc., exorcises (gets rid of) ghosts. During each of the next three months, the company will receive the following number of calls from people who want their ghosts exorcised: January,...

The daily output of stomach acid (gastric juice) is 1000 mL to 2000 mL. Prior to a meal, stomach acid (HCl) typically has a pH of 1.42. (10.5, 10.6) a. What is the [H3O+] of stomach acid? b. One...

A local bar offers special pricing on premium drinks on Monday nights. The customer rolls a due to see the price of their beverage. Outcome of the roll and the corresponding drink price are in the...

How many liters of dry hydrogen gas at STP would be liberated by 0.533 grams of potassium metal?

Describe, and explain the operation, of the equipment used for load cycling on an Avery-Denison 400KN universal testing machine

A group of six immigrants from Southern Asia in your country are asking for your advice; being technologically savvy, they are looking for institutional support to ideate and develop concepts for a...

The court is unpersuaded by these arguments. Why?

1. According to the court, what kind of oral agreement would have been enforce-able? 2. Wior did not want to leave his home and job without assurance of long-term employment. What should he have...

Would the result have been different if it had been Huthers Uncle Bob holding the stock as collateral?

An issue of 8.5% Series C preferred stock has a par value of $75 million or $40 per share and was sold to investors several years ago at par. According to the terms of the issue, the preferred is...

Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the purchase of the equipment necessary to produce the diet drink will cost $28.00 million. The plant...

The two stocks in your portfolio, X and Y, have independent returns, so the correlation between them, rey is zero. Your portfolio consists of $50,000 Invested in Stock X and 550,000 invested in Stock...