Question
1. Pat convinced Kim to co-sign a promissory note, wherein they would borrow $ 600,000.00 from Ezeey Bank, payable in installment for a period of
1. Pat convinced Kim to co-sign a promissory note, wherein they would borrow $ 600,000.00 from Ezeey Bank, payable in installment for a period of three (3) years with interest stipulated. Kim was assured by Pat that she would be the one to pay the loan, but that she just needed another co-maker because it was required in the form prepared by the bank. Pat and Kim signed the Promissory Note, stating that they hold themselves "jointly and severally liable to pay Ezeey Bank" the amount of $ 600,000.00, with interest of 12%, within a period of 36 months.
a. In the event that there is default in payment, against whom may Ezeey Bank proceed for the collection of the entire obligation under the Promissory Note? Explain the basis for your answer.
b. What is Kim's remedy in case Ezeey Bank demands that she pay the entire obligation? Explain your answer.
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