Dustin is a very cautious lender. When approached by Lanier regarding a $2000 loan, he not only demanded an acceptable surely but also collateral equal to 50% of the loan. Lanier obtained King Surety Company as his surety and pledged rare coins worth 1000 with Dustin. Dustin was assured by Lanier one week before the due date of the loan that he would have no difficulty in making the payment. he persuaded Dustin to return the coins since they had increased in value and he had a prospective buyer. What is the largest effect of the release of the collateral upon King Surety?
A) it totally releases King Surety
B) it does not release King Surety if the collateral was obtained after its promise
C) it releases King surety to the extent of the values of the security
D) it does not release King Surety unless the collateral was given to Dustin with the express understanding that it was for the benefit of King Surety as well as Dustin