Kameron, Candice and Leo were members of an LLC, Printing Unlimited, LLC (PU). They leased a digital printing press for their company. Press Sales, Incorporated (PSI), the company that manufactured and leased the printing press to them, required personal guarantees from each of them as a requisite leasing the press. What will be required of Kameron, Candice and Leo?

Multiple Choice

• They must pledge personal assets to guarantee the payment obligations of PU.
• They must pledge to pay PSI first out of PU assets.
• They must guarantee to make good faith efforts to repay the debt when due.
• Nothing, as a personal guarantee has no legal effect on an LLC because it is a limited liability entity.