In May,farmer Smith Sold One of His Tractors to Farmer

In May,farmer Smith sold one of his tractors to farmer Jones for $26 000.Smith received $6000 down and a 7 percent note payable (for $20 000) to be paid on October 15th.In need of cash,farmer Smith brought the note to his bank for discounting.The bank gave cash less 5 percent for the note,whereas farmer Smith endorsed the note in favour of the bank.Farmer Smith performed an act of

A) indemnity.
B) subrogation.
C) discharge.
D) novation.
E) guarantee.