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C is corrent. Cosureties exist when there is more than one surety guaranteeing the same obligation of the principal debtor. Unless the creditor specifically reserves his/her rights, a release of a cosurety by the creditor will release the other cosurety to the extent of the released cosurety’s pro rata share of debt liability. Both Ott and Bane agreed to act as cosureties for the full amount of the loan, $80,000. Their pro rata share of the debt was $40,000 ($80,000 / 2). Since Cread did not reserve its rights against Bane when it released Ott, Bane would only be liable for $40,000.
A is incorrect. Cosureties exist when there is more than one surety guaranteeing the same obligation of the principal debtor. Unless the creditor specifically reserves his/her rights, a release of a cosurety by the creditor will release the other cosurety to the extent of the released cosurety’s pro rata share of debt liability. Both Ott and Bane agreed to act as cosureties for the full amount of the loan, $80,000. Their pro rata share of the debt was $40,000 ($80,000 / 2). Since Cread did not reserve its rights against Bane when it released Ott, Bane would only be liable for $40,000. 
A is incorrect. Cosureties exist when there is more than one surety guaranteeing the same obligation of the principal debtor. Unless the creditor specifically reserves his/her rights, a release of a cosurety by the creditor will release the other cosurety to the extent of the released cosurety’s pro rata share of debt liability. Both Ott and Bane agreed to act as cosureties for the full amount of the loan, $80,000. Their pro rata share of the debt was $40,000 ($80,000 / 2). Since Cread did not reserve its rights against Bane when it released Ott, Bane would only be liable for $40,000. 
D is incorrect.  Cosureties exist when there is more than one surety guaranteeing the same obligation of the principal debtor. Unless the creditor specifically reserves his/her rights, a release of a cosurety by the creditor will release the other cosurety to the extent of the released cosurety’s pro rata share of debt liability. Both Ott and Bane agreed to act as cosureties for the full amount of the loan, $80,000. Their pro rata share of the debt was $40,000 ($80,000 / 2). Since Cread did not reserve its rights against Bane when it released Ott, Bane would only be liable for $40,000.