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Right of the Surety. Meredith, a farmer borrowed $5,000 from Farmer s Bank as well as gave the bank $4,000 in bearer bonds to hold as collateral for the loan. Meredith s neighbour, Peterson who had known Meredith for years signed as a surety on the note. For the reason that of a drought Meredith s harvest that year was only a fraction of what it normally was as well as he was forced to default on his payments to Farmer s Bank. The bank didn't immediately sell the bonds but instead requested $5,000 from Peterson. Peterson paid the $5,000 as well as then demanded that the bank give him the $4,000 in securities. Can Peterson impose this demand? Explain.
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