If the Principal Debtor Defaults, the Surety Has Rights Against

question 53

Multiple Choice

If the principal debtor defaults, the surety has rights against the principal debtor, third parties, and cosureties.These rights would include:

• A) exoneration.
• B) contribution.
• C) reimbursement.
• D) subrogation.
• E) All of these.

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Definitions:

Transitive Inference

Understanding the relationship between two objects by knowing the relationship of each to a third object.

Divergent Thinking

A type of creative thinking that involves generating multiple unique solutions to a problem.

Mnemonic

A tool or strategy designed to assist in remembering information, such as a rhyme or an acronym.

Concrete Operational

A stage in Piaget's theory of cognitive development where children aged 7-12 years can logically think about concrete events.