Prior party liability as principal debtor governs indorsement chains, making earlier parties principal for later parties absent contrary contract. Each party who is otherwise liable as a surety in a chain of indorsements is, absent a contrary contract, also liable as a principal debtor in respect of ... Summary
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Prior party liability as principal debtor governs indorsement chains, making earlier parties principal for later parties absent contrary contract.
Each party who is otherwise liable as a surety in a chain of indorsements is, absent a contrary contract, also liable as a principal debtor in respect of each subsequent party; consequently, principal-debtor status shifts along the chain depending on which parties are compared.
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