1. Which provision of a commercial loan guarantee allows a lender to take action against guarantors as needed, and not necessarily on a pro rata basis?
Continuing provision
Joint and several provision
Unconditional provision
Unlimited provision
2. What is the primary difference between a general operating line of credit and a permanent working capital line of credit?
General operating lines of credit frequently have a substantial principal balance
Permanent working capital lines of credit frequently have a substantial principal balance outstanding
Permanent working capital lines of credit generally are closed-end or non-revolving
General operating lines of credit usually fund rapidly growing businesses