Global commerce depends on credit. Creditors are an important component to the global economy because they provide capital for business start-up and expansion. Laws that protect creditors are essential to inducing them to extend credit to business owners. The classification of creditor determines specific rights and remedies against the borrower-debtor in the case of a default on the terms of the credit agreement.

Read the case below and answer the questions that follow.

Web Warrior, LLC was started as a one-person company in the business of designing websites with a reputation for cutting-edge work. Stafford, the sole owner, embarked on an aggressive expansion plan. To finance the expansion, Stafford borrowed $50,000 from his wealthy Uncle Rich and signed a promissory note on behalf of Web Warrior, LLC. He also took out a loan from Local Bank for a $25,000 line of credit for the LLC, which was secured by assets of the business and a personal guaranty by Stafford. Finally, Stafford purchased a piece of real estate for Web Warrior, LLC's headquarters and secured it through a mortgage via Big Time Lender. In order to obtain the mortgage, Big Time Lender required Stafford's wealthy Aunt Petunia to cosign the loan as a surety.

If Web Warrior, LLC defaults on the loan, what are Local Bank's options for collecting the money owed to them?

I. It can bring lawsuit against Web Warrior, LLC and attempt to collect the judgment from the company's assets. II. It can bring a lawsuit against Stafford personally and attempt to collect the judgment from Staffords personal assets. III. It can foreclose on the collateral and take the assets of the business without going to court. IV. It can bring a lawsuit against Petunia personally and attempt to collect the judgment from Petunias personal assets. V. It can foreclose on the building and sell it to pay for the debt.