Which of the Following Is a Correct Statement Regarding Discharge

question 91

Multiple Choice

Which of the following is a correct statement regarding discharge by impairment of the collateral?

• A)Discharge cannot occur through impairment of the collateral.
• B)If a party posts collateral to ensure his or her performance of the negotiable instrument and the holder of the collateral impairs its value,the party to the instrument is discharged from the instrument to the extent of the damage to the collateral.
• C)If a party posts collateral to ensure his or her performance of the negotiable instrument and the holder of the collateral impairs its value,the party to the instrument is totally discharged from the instrument regardless of the extent of the damage to the collateral.
• D)If a party posts collateral to ensure his or her performance of the negotiable instrument and the holder of the collateral impairs its value,the party to the instrument is totally discharged from the instrument only if the instrument is for less than $500; otherwise,the party to the instrument is discharged from the instrument to the extent of the damage to the collateral.
• E)If a party posts collateral to ensure his or her performance of the negotiable instrument and the holder of the collateral impairs its value,the party to the instrument is totally discharged from the instrument only if the instrument is for less than $1,000; otherwise,the party to the instrument is discharged from the instrument to the extent of the damage to the collateral.

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Definitions:

Thrombus Formation

The process of blood clotting within a vessel, which can obstruct blood flow and lead to various health complications.

Postsurgical Patients

Refers to individuals who have undergone surgery and are in the recovery phase following the procedure.

Antiembolic Stockings

Specialized hosiery designed to help prevent the occurrence of thromboembolism by applying pressure to lower legs, thereby improving blood flow.

Buck's Traction

A type of skin traction used in orthopedics to relieve muscle spasms and immobilize a limb by applying a pulling force.