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

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Definitions:

Net Present Value

A financial metric that calculates the difference between the present value of cash inflows and outflows over a period of time.

Present Value Index

The Present Value Index is a financial metric used to evaluate the viability of a project or investment by comparing its present value of future cash flows to the initial investment.

Investment Proposals

Documents or presentations by a company or individual seeking to attract investors by outlining potential investment opportunities and expected returns.

Compound Interest

Interest calculated on the initial principal, which also includes all of the accumulated interest from previous periods on a deposit or loan.