Franz Signs a $1,000 Note Payable to LongView Bank

question 57

Multiple Choice

Franz signs a $1,000 note payable to LongView Bank.If,to help Franz get the loan approved,Amy also signs the note as an accommodation maker:

• A) Amy's liability is the same as that of an accommodation indorser on a check.
• B) the liability of each party to the bank is: Franz $500 and Amy $500.
• C) Amy has secondary liability on the note.
• D) Amy and Franz both have primary liability on the note.

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