Jack Smith was required by his bank to obtain two sureties for his line of credit of

Question:

Jack Smith was required by his bank to obtain two sureties for his of $100,000. Ellen Weiss has agreed to act as a surety for $50,000, and Allen Fox has agreed to act as a surety for $75,000. Smith has used the full $100,000 in the and is now in bankruptcy. What is the maximum liability of Weiss and Fox if the bank chooses to collect from them for Smith’s default? How should the $100,000 be allocated between Weiss and Fox?

Line of Credit
A line of credit (LOC) is a preset borrowing limit that can be used at any time. The borrower can take money out as needed until the limit is reached, and as money is repaid, it can be borrowed again in the case of an open line of credit. A LOC is...