Finance
A North Dakota commercial lender requires a 'personal guaranty' from a business owner seeking a commercial real estate loan. This means the owner:
APersonally guarantees to inspect the property annually
BIs personally liable for the loan if the business entity defaults✓ Correct
CMust personally occupy a portion of the building
DGuarantees the lender's return on investment
Explanation
A personal guaranty makes the individual business owner personally liable for the commercial loan if the borrowing business entity defaults. It provides the lender an additional source of repayment beyond the collateral.
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