When a Company Discounts an Interest-Bearing Note at a Bank

Multiple Choice

When a company discounts an interest-bearing note at a bank with recourse:

A) The company is assured payment at maturity.
B) The company will receive the full amount of the note plus interest.
C) The company has a contingent liability from the time the note is discounted until its maturity date.
D) The bank assumes the credit risk on non-payment at the maturity date.