Reuter Bank loaned Sabean Corporation $500,000 in
writ ing. As part of the agreement, Reuter required that the
three owners of Sabean act as sureties on the loan. The corporation
also required that some real estate owned by Sa bean
Corporation be used as collateral for 40% of the loan. The
collateral and sure tyship agreements were put in writing
and signed by all relevant parties. When the $500,000 loan
became due, which of the fol lowing rights does Reuter Bank
have?

I. May demand payment of the full amount immediately from
the sureties when the corporation de faults on the loan.
II. May demand payment of the full amount immediately from
the sureties even if Reuter does not attempt to re cover any
amount from the collateral.
III. May attempt to recover up to $200,000 from the collat eral and
the remainder from the sureties, even if the re mainder is more
than $300,000.
IV. Must fi rst attempt to collect the debt from Sabean Corpo ration
before it can resort to the sureties or the collateral.

a. I and III only.
b. II only
c. I, II, and III only.
d. IV only.

C) I, II, and III only.

Explanation:

The bank has several options in this case, depending on the financial position and net worth of the sureties and the corporation. It can decide to collect all the debt directly from them, or collect part of the debt through the collateral property, or it can go after the assets of the corporation, or any type of combination. In this case the bank has three options from which it can collect the debt and it is up to them to decide how they proceed.

answer/// equals both average variable cost and average total cost at their respective minimums;

two years ago, when picking flowers in the mountains back of yosemite valley, i found a book. it was blotted and storm-beaten; all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however; many of the inner pages were well preserved. and although all were more or less stained and torn, whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today; its granite pages have been torn and blurred by the same storms that wasted the castaway book.

two years ago, when picking flowers in the mountains back of yosemite valley; i found a book. it was blotted and storm-beaten, all of its outer pages were mealy and crumbly. the paper seemed to dissolve like the snow beneath which it had been buried, however, many of the inner pages were well preserved. and although all were more or less stained and torn; whole chapters were easily readable. this is the condition of the great open book of yosemite glaciers today, its granite pages have been torn and blurred by the same storms that wasted the castaway book.