Question

Nash, Owen, and Polk are co-sureties with maximum liabilities of $40,000, $60,000 and $80,000, respectively. The amount of the loan on which they have agreed to act as co-sureties is $180,000. The debtor defaulted at a time when the loan balance was $180,000. Nash paid the lender $36,000 in full settlement of all claims against Nash, Owen, and Polk. The total amount that Nash may recover from Owen and Polk is __________ .

Answer 1

$60,000 and $80,000 respectively

Step-by-step explanation:

Since maximum liabilities of each person is provided, we have

Nash = $40,000

Owen = $60,000

Polk = $80,000

Total = $180,000

Therefore, if Nash has paid $36,000 in his full settlement then the remaining share of Nash i.e. $40,000 - $36,000 cannot be recovered from Owen and Polk as their maximum liability will be for the amount $60,000 and $80,000 respectively.

Final Answer

$60,000 and $80,000 respectively