Fact Pattern 24-1
Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application.
-Refer to Fact Pattern 24-1. If, after the loan agreement is signed, Slick agrees to a higher rate of interest without telling Tina, then Tina is

Question

Fact Pattern 24-1 
Petro Oil Refinery asks Quality Bank for a loan to increase its oil inventory. Quality requires Robin, Petro's president, sign a personal guaranty to pay the debt if Petro defaults. Meanwhile, to sell fifty barrels of refined oil to Slick Lubricants, Inc., Petro asks its outside accountant Tina to co-sign a credit application.
-Refer to Fact Pattern 24-1. If, after the loan agreement is signed, Slick agrees to a higher rate of interest without telling Tina, then Tina is

Quizplus · Accepted Answer

If the terms of the agreement are changed without the co-signer's knowledge or consent, the co-signer (Tina) is typically discharged from the agreement.