Discharge of surety: creditor conduct impairing the surety's remedy relieves surety from liability under guarantee law, with examples. A surety is discharged if the creditor does any act inconsistent with the surety's rights, or omits a duty to the surety, and thereby impairs the surety's eventual remedy against the principal debtor; examples include creditor prepayment that defeats subrogation, negligent sale of security reducing recovery, and omission of agreed supervisory duties enabling loss.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Discharge of surety: creditor conduct impairing the surety's remedy relieves surety from liability under guarantee law, with examples.
A surety is discharged if the creditor does any act inconsistent with the surety's rights, or omits a duty to the surety, and thereby impairs the surety's eventual remedy against the principal debtor; examples include creditor prepayment that defeats subrogation, negligent sale of security reducing recovery, and omission of agreed supervisory duties enabling loss.
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