When two people cosign a note with joint and several liability, what does it imply?

The correct understanding of joint and several liability in the context of a cosigned note indicates that each cosigner is responsible for the entire debt. This means that if one individual defaults, the lender can pursue either cosigner for the full amount owed, regardless of who originally borrowed the money or how the payments were divided. This arrangement is designed to protect the lender's interests by ensuring that they can seek full recovery from either party.

This concept is particularly important in real estate transactions and financing, as it emphasizes the financial risk involved when multiple parties are involved in securing a loan. In practice, this means that if one cosigner fails to make payments, the other cosigner can be legally obligated to cover the entire debt, reinforcing the necessity for both parties to fully understand their financial commitment before entering into such an agreement.