Thomas Borrowed $100,000 from First Bank,which Asked That He Both

question 7

Essay

Thomas borrowed $100,000 from First Bank,which asked that he both put up collateral and provide a surety.Consequently,Thomas provided the bank with a security interest in his antique car collection and asked Victor to act as a surety.Victor agreed to do so and signed a surety agreement with the bank.Thomas made several payments on the loan and then asked First Bank for permission to sell three of his cars.First Bank agreed,but it never notified Victor of the sale of the collateral.Thomas then defaults on the loan.First Bank now wants Victor to pay the remainder of the loan.Must Victor pay? Explain.

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Definitions:

Experience-dependent Development

The process by which individual experiences, such as learning, directly influence and shape the development of neural connections and behavior.

Vocal Cords

The folds of tissue in the larynx responsible for producing sound, including speech.

Habituation

The psychological process of gradually becoming accustomed to a stimulus after repeated exposure, leading to a decrease in response.

Classical Conditioning

A learning process in which an innate response to a potent stimulus comes to be elicited in response to a previously neutral stimulus.