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Alexis Watson
on Nov 28, 2024

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Bach borrows funds from City Bank to pay his tuition. Dvorak co-signs the credit application. After the loan agreement is signed, Bach agrees to a higher rate of interest without telling Dvorak, who is thereby

A) discharged from the agreement.
B) liable at the higher rate of interest.
C) liable at the lower rate of interest.
D) liable for the principal only.

Co-signs

Acts of signing a loan or document jointly with another person, thereby agreeing to share the responsibility for the associated obligations.

Credit Application

A form or process by which an individual or company seeks to obtain credit from a lending institution or creditor.

Interest Rate

the percentage charged on a loan or paid on deposits over a specific period of time, reflecting the cost of borrowing or the reward for saving.

  • Comprehend the idea and consequences of guarantees and guaranties within financial contracts.
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Deonna BickleyNov 29, 2024
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