Home > Preview
The flashcards below were created by user
on FreezingBlue Flashcards.
a contract involving a compensated surety
When a cosurety pays more than its proportionate share of the debt it can demand payment from other cosurities so that each surety is paying its proportionate share of the debt.
Two or more seretires are guarenteeing the same debt.
Similar to a surety, but a guarantor is secondarity liable to the creditor. Thus, in the even that the debtor defaults the creditor must at least ask the debtor to pay, but in the event the debtor says "no", then the creditor may seek payment from the guarantor.
If the surety pays the debt, the surety is entitled to receive whatever it paid to the creditor from the debtor.
After the surety has paid the debt it aquires the rights of the creditor and may now exercise those rights against the debtor. Thus, if the debtor has given the creditor collateral, the surety would have rights against the collateral.
A party who promises to pay the debt of another party. Sureties are primarily liable to the creditor.
What would you like to do?
Home > Flashcards > Print Preview