If a Principal Posts Security for the Performance of an Obligation

question 47

True/False

If a principal posts security for the performance of an obligation to a creditor,the creditor must not surrender that security without the consent of sureties.

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Definitions:

Corporate Fraud

It involves illegal activities undertaken by an individual or company in a deceitful manner, typically to gain a financial advantage.

Sarbanes-Oxley Act

U.S. legislation enacted in 2002 to protect investors from the possibility of fraudulent accounting activities by corporations, increasing transparency and accountability in corporate governance.

Unlawful Conduct

Actions or behaviors that are illegal or prohibited by law.

Codes of Conduct

A set of rules outlining the responsibilities and proper practices for an individual or organization.