If a Loan Is Cosigned and the Borrower Defaults, the Lender

question 41

True/False

If a loan is cosigned and the borrower defaults, the lender has the right to sue the cosigner or try to seize the cosigner's assets just as if that person were the borrower.

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Definitions:

Incremental Value

The additional value created or achieved as a direct result of a specific action, decision, or investment.

Cash

A form of liquid asset that includes physical currency such as banknotes and coins, and demand deposits that can be quickly converted into physical cash.

Incremental Value

The additional or extra value generated by undertaking a new project, making an investment, or initiating a new action.

Equity-Financed

A method of raising capital through the sale of shares in the company, leading to shareholder ownership.