Finance
A Texas commercial borrower's lender requires personal guaranty. This means:
AThe lender guarantees the borrower's personal assets
BThe individual(s) behind the business entity are personally liable for the loan if the entity defaults✓ Correct
CThe Texas government guarantees the commercial loan
DThe property is sufficient collateral without personal liability
Explanation
A personal guaranty makes individual borrowers or principals personally liable for a commercial loan, beyond just the collateral property. If the business entity defaults and the property's value is insufficient, the lender can pursue the guarantors' personal assets.
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