When a third party provides a guarantee for a personal loan, the loan officer should:

a. Allow the borrower to provide the signed guarantee documents to the bank.

b. Ensure that the person providing the guarantee fully understands the nature of the obligation and has the financial capacity to make these payments if needed.

c. Accept guarantees from wives or parents without any further assurances.

d. Provide a large and complex document to be read by the guarantor at a later date.

e. None of these choices are correct.