Zelda signs a promissory note for $2,500 to First Bank.At the request of both Zelda and the bank, Ann also signs the note as an accommodation maker.In this situation:
A) Zelda is primarily liable on the note.
B) Ann is primarily liable on the note.
C) Ann has secondary liability on the note
D) Zelda and Ann are both primarily liable on the note.
E) Zelda is primarily liable and Ann has secondary liability on the note

Question

Zelda signs a promissory note for $2,500 to First Bank.At the request of both Zelda and the bank, Ann also signs the note as an accommodation maker.In this situation:
A) Zelda is primarily liable on the note.
B) Ann is primarily liable on the note.
C) Ann has secondary liability on the note
D) Zelda and Ann are both primarily liable on the note.
E) Zelda is primarily liable and  Ann has secondary liability on the note

Quizplus · Accepted Answer

Both Zelda and Ann are primarily liable on the note because Ann signed as an accommodation maker, meaning she is equally responsible for the debt.

Zelda Signs a Promissory Note for $2,500 to First Bank