Question

Assume that Jane’s company does not have the $50 million in cash to purchase the building. The company mortgage with the bank. The bank is worried about the company’s financial health, so to grant the mortgage, the bank and Jane enter into an agreement that states that Jane personally is secondarily liable for payment in the event that the company defaults. The agreement between the bank and Jane personally is:

Answer 1

Answer:

The agreement among the Jane and bank personally is the Guaranty

Explanation:

As Jane want to take a loan of $50 from bank in order to purchase a building but bank is worried regarding the financial health of the company so in order to grant the loan or mortgage, both bank and Jane entered into an agreement which states that the Jane would be personally liable for the payment if company defaults. So, the agreement in which they agreed is the guaranty given by Jane to bank.