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Required Information Global commerce depends on credit. Creditors are an Important component to the global economy because they provide capltal for business start-up and expansion. Laws that protect creditors are essentlal to Inducing them to extend credit to business owners. The classification of creditor determines specific rights and remedies against the borrower-debtor in the case of a default on the terms of the credit agreement. Read the case below and answer the questions that follow. Web Warrior, LLC was started as a one-person company In the business of designing websites with a reputation for cutting-edge work. Stafford, the sole owner, embarked on an aggressive expansion plan. To finance the expansion, Stafford borrowed $50,000 from his wealthy Uncle Rich and signed a promissory note on behalf of Web Warrlor, LLC. He also took out a loan from Local Bank for a $25,000 line of credit for the LLC, which was secured by assets of the business and a personal guaranty by Stafford. FInally, Stafford purchased a plece of real estate for Web Warrior, LLC's headquarters and secured It through a mortgage vla Big Time Lender. In order to obtain the mortgage, Big Time Lender required Stafford's wealthy Aunt Petunla to cosign the loan as a surety. What is Local Bank's status as a creditor? Multiple Choice It is a mortgagee. It is an unsecured creditor. It is not a creditor. It has created a purchase money securlty Interest. It is a secured creditor

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