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.