Rita and her mother visit the bank as Rita wants to borrow money for a car. Her mother will be her guarantor. The banker fills out the loan form and the guarantee form but has only one gummed seal. Considering what might be the most prudent place to put the seal, the banker affixes the seal on the guarantee to be signed by Rita's mother. One seal is enough, this was the correct choice of place to put it, and the bank is fully protected.

Question

Quizplus · Accepted Answer

The guarantee form is the critical document that needs the seal because it legally binds the guarantor (Rita's mother) to the agreement, ensuring the bank can pursue her for repayment if Rita defaults. This makes the bank fully protected in the agreement.

Rita and Her Mother Visit the Bank as Rita Wants