Steve defaults on a car loan secured by his car and guaranteed by both Sam and Dave.Subrogation would allow Sam,who paid Steve's full obligation to:
A)repossess the car.
B)collect from Dave.
C)collect from Steve.
D)All of the above.

Question

Quizplus · Accepted Answer

Subrogation is a legal principle that allows one party (in this case, Sam) to step into the shoes of another party (in this case, the lender) after the debt has been paid off. As a result, Sam would have the right to pursue all of the remedies available to the lender, including repossessing the car, collecting from Dave, and collecting from Steve. Therefore, the best choice is D, all of the above.

Steve Defaults on a Car Loan Secured by His Car