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

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When a co-signer agrees to a loan, they are agreeing to the terms as they are at the time of signing. If those terms are changed without the co-signer's knowledge or consent, such as increasing the interest rate, the co-signer is typically discharged from their obligation because the agreement they signed has been altered.

Bach Borrows Funds from City Bank to Pay His Tuition