CPA Regulation (REG) Question of the Day

Insanity of the principal debtor at the time the contract was entered into with the creditor.

Filing of an involuntary petition in bankruptcy against the principal debtor.

Modification by the principal debtor and creditor of their contract that materially increases the surety’s risk of loss.

Release of the principal debtor’s obligation by the creditor but with the reservation of the creditor’s rights against the surety.