The Concept of Subrogation Applies to the Liability of a Guarantor

question 66

Multiple Choice

The concept of subrogation applies to the liability of a guarantor under a loan guarantee.Under the concept of subrogation

• A)the lender must attempt to realize on any security for the loan before claiming from the guarantor.
• B)the guarantor that compensates a lender takes over the right of the lender to sue the borrower.
• C)the lender can sue the guarantor if there is default by the borrower under the loan.
• D)the lender must attempt to collect from the borrower before pursuing the guarantor for payment of the loan.
• E)none of the above

---

Definitions:

Trial

A formal judicial proceeding where parties present evidence and arguments to a judge or jury for a legal dispute resolution.

Plaintiff

The party who initiates a lawsuit in a court of law by filing a complaint against the defendant seeking a legal remedy.

Damages

A monetary award sought as a remedy for a breach of contract or a tortious act.

Defendant

A person or entity against whom a legal action is brought in a court of law.