Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Dustin is a very cautious lender. When approached by Lanier regarding a $2000 loan, he not only demanded an acceptable surely but also collateral equal

Dustin is a very cautious lender. When approached by Lanier regarding a $2000 loan, he not only demanded an acceptable surely but also collateral equal to 50% of the loan. Lanier obtained King Surety Company as his surety and pledged rare coins worth 1000 with Dustin. Dustin was assured by Lanier one week before the due date of the loan that he would have no difficulty in making the payment. he persuaded Dustin to return the coins since they had increased in value and he had a prospective buyer. What is the largest effect of the release of the collateral upon King Surety? A) it totally releases King Surety B) it does not release King Surety if the collateral was obtained after its promise C) it releases King surety to the extent of the values of the security D) it does not release King Surety unless the collateral was given to Dustin with the express understanding that it was for the benefit of King Surety as well as Dustin

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting Tools for Business Decision Making

Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso

9th edition

1-119-49356-3, 1119493633, 1119493560, 978-1119493631

More Books

Students also viewed these Accounting questions

Question

What is the difference between a growth company and a growth stock?

Answered: 1 week ago