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Asked by Ferhat Butun on May 14, 2024

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If a creditor brings legal action against a surety or guarantor, the surety or guarantor has no legal defenses available.

Legal Action

The process of seeking judicial intervention to enforce or protect a right through a lawsuit or other legal means.

Surety

A guarantee, typically by a third party, ensuring the fulfillment of an obligation or the performance of a contract.

Guarantor

An individual or entity that agrees to be responsible for another's debt or performance under a contract if the original party fails to meet their obligations.

  • Acquire knowledge about the duties and accountabilities of sureties and guarantors in financial agreements.
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Amirul AkmalMay 18, 2024
Final Answer :
False
Explanation :
A surety or guarantor may have several legal defenses available, such as the principal debtor not being in default, the terms of the guarantee not being fulfilled by the creditor, or the contract of guarantee being invalid or unenforceable due to reasons like fraud or duress.

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