Payne Borrowed $500 from Long Bank

Multiple Choice

Payne borrowed $500 from Long Bank.At the time the loan was made to Payne,Gem orally agreed with Long that Gem would repay the loan if Payne failed to do so.Gem received no personal benefit as a result of the loan to Payne.Which of the following is most likely to be true,under the circumstances?

A) Gem must provide a collateral to Long.
B) Both Gem and Payne are primarily liable to repay the loan.
C) Gem is free from liability concerning the loan.
D) Payne must provide a lien to Gem for the amount of the debt.