Asked by Shalini Ballur on Jul 21, 2024
Verified
In the case in the text National College Loan Trust 2004-1 v.Irizarry,what was the court's holding?
A) The contract did not require the loan company to exhaust all remedies against the student before calling upon the accommodation party to make a payment.
B) The contract required the loan company to exhaust all remedies against the student before calling upon the accommodation party to make a payment.
C) The accommodation party was not liable for payments on the loan because he did not receive a benefit under the education loan contract.
D) The accommodation party was not liable for payments on the loan because the loan company did not properly put him on notice.
Accommodation Party
An entity or person who signs a negotiable instrument on behalf of another, guaranteeing payment without receiving any direct benefit.
Education Loan Contract
A legal agreement between a lender and a borrower, where the lender provides funds for education, which the borrower agrees to repay under defined terms.
- Investigate the outcomes of court cases concerning negotiable instruments and financial transactions.
Verified Answer
MC
Maria CodispotiJul 23, 2024
Final Answer :
A
Explanation :
Article 3 of the UCC provides that the discharge of an obligation of one party to pay an instrument does not discharge the obligation of the indorser or accommodation party having recourse against the discharged party.Thus the Loan Trust could discharge Irizarry without discharging the cosigner,Algahmee.
Learning Objectives
- Investigate the outcomes of court cases concerning negotiable instruments and financial transactions.