Saunders purchased a home from Barnes and agreed to assume an existing conventional loan. The lender agreed to the assumption and issued a substitution of liability. Under these circumstances:

A: Saunders is primarily responsible for the loan and Barnes remains liable as a surety;
B: Nothing is being accomplished if the loan is secured by a purchase-money deed of trust;
C: Barnes is relieved from further duties under the obligation;
D: Barnes remains primarily responsible for the loan and Saunders is secondarily liable.

Answer: C: Barnes is relieved from further duties under the obligation;

Business

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