Kajal Wanted to Borrow $500 000 from a Bank in Order

Multiple Choice

Kajal wanted to borrow $500 000 from a bank in order to start up a new business.Because the bank was not convinced that the business would succeed,it insisted upon having repayment of the loan guaranteed.Kajal therefore persuaded her father,Ameen to sign as guarantor.As the bank had feared,Kajal's business failed,and as a result,Kajal cannot afford to repay the entire loan.The bank therefore insists that Ameen is liable to pay as guarantor.Which of the following statements is TRUE?

A) The bank must collect from either Kajal or Ameen,and it cannot recover some of the loan from one and the rest from the other.
B) If the guarantee agreement contains a clause that prevents Ameen from relying upon any defence that Kajal could have used against the bank,a court will declare that clause to be void.
C) Ameen is not liable on the guarantee if,without his consent,Kajal and the bank agreed,after the original documents were signed,to modify the rate of interest.
D) Given the relationship between Kajal and Ammen,a court will not enforce the guarantee unless the bank proves that the arrangement was to Ameen's financial advantage.
E) The bank cannot enforce the guarantee unless it has already tried to recover payment from Kajal.