Green was unable to repay a loan from State Bank when due. State refused to renew the loan unless Green provided an acceptable surety. Green asked Royal, a friend, to act as surety on the loan. To induce Royal to agree to become a surety, Green fraudulently represented Green's financial condition and promised Royal discounts on merchandise sold at Green's store. Royal agreed to act as surety and the loan was renewed. Later, Green's obligation to State was discharged in Green's bankruptcy. State wants to hold Royal liable. Royal may avoid liability

A. If Royal can show that State was aware of the fraudulent representations.
B. If Royal was an uncompensated surety.
C. Because the discharge in bankruptcy will prevent Royal from having a right of reimbursement.
D. Because the arrangement was void at the inception.

A. If Royal can show that State was aware of the fraudulent representations.