D is corrent. The surety may generally exercise the defenses on the contract that would be available to the debtor such as the fraud committed against the debtor by the seller. The surety may also take advantage of his/her own contractual defenses such as the fraud committed against the surety by the seller.
A is incorrect. The surety may generally exercise the defenses on the contract that would be available to the debtor such as the fraud committed against the debtor by the seller. The surety may also take advantage of his/her own contractual defenses such as the fraud committed against the surety by the seller.
B is incorrect. The surety may generally exercise the defenses on the contract that would be available to the debtor such as the fraud committed against the debtor by the seller. The surety may also take advantage of his/her own contractual defenses such as the fraud committed against the surety by the seller.
C is incorrect. The surety may generally exercise the defenses on the contract that would be available to the debtor such as the fraud committed against the debtor by the seller. The surety may also take advantage of his/her own contractual defenses such as the fraud committed against the surety by the seller.
| 
