The Most Common Kind of Change Affecting a Surety Is

question 51

Multiple Choice

The most common kind of change affecting a surety is ________.

• A)a change in interest rate
• B)an extension of time to perform the contract
• C)a change from a compensated surety to an accommodation surety
• D)a change from a surety to a guarantor

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Definitions:

Federal Deregulation

The process of removing government restrictions and rules in industries to increase efficiency and competition.

Interest Rates

The amount charged by lenders to borrowers for the use of money, expressed as a percentage of the principal, typically over a one-year period.

Existing Loans

Financial obligations that are currently outstanding and have not yet been repaid.

Bank Loan

A sum of money lent by a bank to a borrower at interest, to be repaid over a specified period along with the interest.