Fact Pattern 33-1 (Questions 14-15 apply)
Alpha Corporation needs to borrow money to meet its payroll.Blair,Alpha's owner,asks City Bank to loan Alpha the funds.
-Refer to Fact Pattern 33-1. If City Bank insists that Blair sign the loan ap?plica?tion to assume liability for payment whether or not Alpha defaults,Blair will be

Question

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If Blair signs the loan application to assume liability for payment, she will be primarily liable for repayment of the loan, meaning that City Bank can go directly after her for payment if Alpha defaults on the loan. This would be in addition to any liability that Alpha itself may have for repayment.

Fact Pattern 33-1 (Questions 14-15 Apply)