Asked by
reiona grass
on Nov 30, 2024
Verified
A primary reason for requiring a surety is to reduce the creditor's risk of loss.
Surety
A person or entity that takes responsibility for someone else's performance, such as repaying a loan, appearing in court, or fulfilling a contract.
Creditor's Risk
The risk that a creditor will not receive the outstanding debt owed by a borrower, due to the borrower's default or inability to pay.
- Differentiate the functions and responsibilities of a principal debtor, surety, and creditor within the context of guarantee agreements.
Verified Answer
JK
Learning Objectives
- Differentiate the functions and responsibilities of a principal debtor, surety, and creditor within the context of guarantee agreements.
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