Zelda signs a note for $500 to First Bank.If,at the request of both Zelda and the Bank,Ann also signs the note as an accommodation maker:
A) Zelda is primarily liable on the note;Ann has secondary liability on the note.
B) Ann is primarily liable on the note;Zelda has secondary liability on the note.
C) Ann has primary liability on the note;no one has secondary liability.
D) Zelda is primarily liable on the note;no one has secondary liability.

Question

Quizplus · Accepted Answer

In this scenario, Zelda, as the original signer of the note, is primarily liable for the debt. Ann, who signs the note as an accommodation maker at the request of both Zelda and the bank, assumes secondary liability. This means Ann agrees to pay the note if Zelda fails to do so, but her liability is contingent upon Zelda's default.

Zelda Signs a Note for $500 to First Bank