Surety Agreements

Practice Questions

CPA Regulation (REG) › Surety Agreements

Questions
6
1

Which of the following rights does a surety have?

I. Right to compel the creditor to collect from the principal debtor

II. Right to compel the creditor to proceed against the principal debtor’s collateral

2

Brown cosigned Royal's $50,000 note to State Bank. If Royal is later adjudicated mentally incompetent, what would be Brown's liability on the note?

3

Which of the following events will release a noncompensated surety from liability?

4

Of the following rights and liabilities, which does a surety have?

5

Per the Federal Fair Debt Collection Practices Act, which of the following would a collection service using improper debt collection practices be subject to?

6

Of the following defenses, which would a surety be able to assert successfully to limit the surety’s liability to a creditor?

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