Tiny borrows $20,000 from First Bank. Mike is the surety on the loan. Tiny defaults and First Bank requires Mike to pay the balance of the loan. In this case, Mike may sue:

Question

Quizplus · Accepted Answer

Mike, as the surety, has agreed to take on the obligation of paying the loan if Tiny defaults. This situation does not inherently involve violation of guarantor obligations, fraud, or grounds for exoneration by the bank, nor does it legally allow Mike to sue Tiny to become an indentured servant, as indentured servitude is not a legal remedy for debt in modern legal systems.

Tiny Borrows $20,000 from First Bank