What Happens If a Guarantor Is Called Upon to Satisfy

question 18

Multiple Choice

What happens if a guarantor is called upon to satisfy the debtor's obligations?

• A)The contract of guarantee is modified so that the guarantor is named as the debtor.
• B)The guarantor can recover his funds from the creditor.
• C)The rights of the creditor against the debtor are exercisable by the guarantor against the debtor.
• D)The guarantee is automatically discharged.

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Definitions:

Thermal Expansion

The expansion of material as it is heated, such as heating and cooling that cause different minerals, or different parts of a rock, to expand and contract by different amounts.

Barrier Islands

Narrow, elongated islands lying parallel to the coast, formed largely of sand, protecting the coast from erosion and storms.

Coastal Accumulations

The build-up of sedimentary materials, such as sand and gravel, along coastlines due to oceanic and tidal movements.

Shallow

relating to an area of water that is not deep.