Abby borrows money from Cain Bank and Baker cosigns on the loan contract.Abby fails to repay this loan and Cain Bank collects the debt from Baker.Baker is entitled to recover the amount he paid to the bank from Abby.This is known as the:
A)right of subrogation.
B)right of return.
C)right of reimbursement.
D)right of garnishment.

Question

Quizplus · Accepted Answer

If the surety performs or pays the principal's obligation,she is entitled to recover her costs from the principal;this is known as the surety's right to reimbursement.

Abby Borrows Money from Cain Bank and Baker Cosigns on the Loan