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13 Nov 2011, 6:45 pm by Matthew A. Cordell
Cordell(First published July 2010)In May 2010, the North Carolina Court of Appeals ruled that a surety, including a co-borrower signing as a mere "accommodation party," can avoid liability on a promissory note if the lender knew, or should have known, that there was a material risk that the primary borrower would be unable to fulfill its obligations under the note and the lender did not inform the surety of that risk.The case, Whisnant v. [read post]