Franz Signs a $1,000 Note Payable to ABC Bank

Multiple Choice

Franz signs a $1,000 note payable to ABC Bank. To help Franz get the loan approved, Amy also signs the note as an accommodation maker. Amy:

A) has the same liability as that of an accommodation indorser on a check.
B) has $500 of liability to the bank and Franz has $500 of liability.
C) has secondary liability on the note.
D) and Franz both have primary liability on the note.