James was the guarantor for a loan Edward had at the bank.Edward had also pledged a coin collection as security for the loan.The loan came in default,so James made the remaining payments.Who gets the coin collection?

Question

Quizplus · Accepted Answer

James, as the guarantor who made the remaining payments, has the right of subrogation, which means he can step into the shoes of the bank and claim the coin collection as security for the loan that he has paid off. Therefore, he would be entitled to the coin collection as per his right of subrogation.

James Was the Guarantor for a Loan Edward Had at the Bank.Edward