Katherine borrows $95,000 from Acme Bank to finance her restaurant in the CBD of Wollongong. Six months later, Acme Bank decides that it would like a guarantee for the loan. Katherine is wondering how she is able to find a guarantor. She thinks of approaching her father Cedric, who has left her mother and has re-married. She went to see Cedric who was most reluctant to help her now that he has a new family to support. Katherine reluctantly approaches her pensioner mother, Pat, who agrees to give the guarantee seeing how important this is to Katherine whose restaurant is not doing particularly well because of the COVID-19 pandemic. Pat visits Acme Bank and asks the loans officer Tommy who deals with the guarantee whether she could lose her home as a result of becoming guarantor for the $95,000 loan from the bank. Tommy reassures Pat that her home is in no danger. It is important to note that Pat receives no other advice about the guarantee she is giving to support Katherine's loan. In the midst of the COVID-19 pandemic when many restaurants have to close down in Wollongong and the surrounding suburbs, Katherine's restaurant fails spectacularly and she is unable to repay her loan to Acme Bank. She has no substantial assets except her house which Acme Bank says she will have to sell.

Advise Pat of her legal position in these circumstances. Support your answer with case law and legislation where applicable.