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Meredith, a farmer borrowed $5,000 from Farmer's Bank and 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 the drought Meredith's harvest that year was a fraction of what it normally was and he was forced to evasion on his payments on his payments to Farmer's Bank. The bank didn't immediately sell the bonds however 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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