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 ... Summary
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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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