The first part of this module discusses the rights and duties of debtors and creditors. One of the important areas is the idea of a lien. Note the different types of liens and their effect on debtors and creditors. Also covered are the concepts of composition agreements with creditors and assignments for the benefit of creditors. These can be used as alternatives to bankruptcy.
A. Rights and Duties of Debtors and Creditors
B. Nature of Suretyship and Guaranty
C. Creditor’s Rights and Reme
D. Surety’s/Guarantor’s Rights and Remedies
E. Surety’s/Guarantor’s Defenses
G. Surety Bonds
Multiple-Choice Answers and Explanations
This module also discusses the concepts of guaranty and suretyship. These two are nearly the same concept. The main difference is that the guarantor is typically secondarily liable to the creditor, whereas the surety is normally primarily liable to the creditor. The rights and duties are otherwise almost the same for both the guarantors and the sureties. Before beginning the reading you should review the key terms at the end of the module.