Which of the Following Statements Regarding the Securing of Debt

question 109

Multiple Choice

Which of the following statements regarding the securing of debt is true?

• A) The term guarantee, otherwise known as an indemnity, refers to a primary debt obligation.
• B) To avoid problems related to consideration, lending institutions often require that guarantees be placed under seal.
• C) In every province, there is now a requirement that a guarantor appear before a notary public.
• D) Because of the principle of caveat emptor, a creditor has no obligation to protect the interests of a guarantor.
• E) As guarantees are mere formalities, there is little point in getting legal advice prior to executing one.

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Definitions:

Net Primary Productivity

The rate at which plants and other photosynthetic organisms produce organic compounds in an ecosystem minus the rate of respiration.

Tropical Rain Forest

Biome found near the equator, characterized by warm weather, plentiful rainfall, high biodiversity, and mainly tree-living animal life.

Biomes

Large ecological areas on the earth's surface, with flora and fauna (animals and plants) adapted to their environment.

Biome

One of the biosphere’s major communities, characterized in particular by certain climatic conditions and particular types of plants.