Jen is the maker of a note, on which Bart is secondarily liable. Credit Instruments Company (CIC) is the current holder of the note. Bart will be obligated to pay the note if
A) Jen defaults on the note.
B) CIC breaches a transfer warranty.
C) CIC negotiates the note to Delta Collection Agency, a third party.
D) CIC presents the note for payment.

Question

Jen is the maker of a note, on which Bart is secondarily liable. Credit Instruments Company (CIC) is the current holder of the note. Bart will be obligated to pay the note if​
A) ​Jen defaults on the note.
B) ​CIC breaches a transfer warranty.
C) ​CIC negotiates the note to Delta Collection Agency, a third party.
D) ​CIC presents the note for payment.

Quizplus · Accepted Answer

Bart's liability is secondary, which means that he is only obligated to pay if the primary obligor (Jen) defaults on the note.

Jen Is the Maker of a Note, on Which Bart