Fact Pattern 28-1B. Chocolate! Chocolate! Corporation is a new company that needs to borrow money to meet its payroll. Dayna, president and owner of Chocolate! Chocolate!, asks Evermore Credit Union to loan the funds to Chocolate! Chocolate!

If Evermore insists that Dayna sign the loan application, making her personally liable for PAYMENT WHETHER OR NOT Chocolate! Chocolate! defaults, Dayna will be

A surety

Explanation: a surety involves a promise by one party to take responsibility for the debt obligation of a borrower if that borrower defaults. A surety bond or surety is a promise by a guarantor to pay one party (the obligee) usually a government entity a certain amount if a second party (the principal) fails to meet fulfilling the terms of payment.The surety bond protects the obligee against losses resulting from the principal's failure to meet the obligation. The person providing the promise is also known as a surety or a guarantor

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