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Pietra Korda and Anna Kim were partners in a design business, K2 solutions. They operated the business in a building owned by the partnership. The partnership purchased the building with the proceeds of a loan from Commerce Bank of Brunswick, which held a mortgage in the building. When Korda dissociated from the partnership, Kim paid Korda the value of her partnership interest, and Korda gave up all her claims against the partnership and its assets. Korda filed a Statement of Dissociation with the state, and she gave notice by a letter to Commerce Bank that she had left the partnership. Commerce Bank did not respond to the letter. Kim dissolved the partnership, filing a Statement of Dissolution, and continued the business under the name K-One Solutions, LLC. For two years, Kim made monthly payments to Commerce Bank on the mortgage, paying with checks drawn on K-One Solutions' checking account at Commerce Bank. When Kim defaulted on the mortgage obligation, Commerce Bank sued K2 Solutions, Kim, and Korda.
Answer the following questions in the space provided below:
1. Is Korda liable on the mortgage obligation to Commerce Bank? Why or why not? (be sure to address the timing of the debt and how one releases oneself from debt when leaving a partnership).
2. If a court were to find Korda liable on the mortgage, what course of action should she pursue against Kim?
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