EZ Credit, Inc., lends $1,000 to Joe. Kay acts as Joe's surety. If Kay pays the loan, she gets

Question

EZ Credit, Inc., lends $1,000 to Joe. Kay acts as Joe's surety. If Kay pays the loan, she gets​

Quizplus · Accepted Answer

As a surety, Kay is responsible for repaying the loan if Joe defaults. Therefore, she would have a right to be repaid by Joe. Additionally, as a creditor of Joe, EZ would have certain rights against him, such as the right to collect any collateral used to secure the loan. As Kay has paid the loan on Joe's behalf, she would step into EZ's shoes and have those same rights against Joe. Therefore, Kay would have any right that EZ had against Joe and a right to be repaid by Joe.