If a creditor damages collateral security given to secure a debt, surety is not discharged.

Name: If a creditor damages collateral security given to secure a debt, surety is not discharged.
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Question

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If a creditor damages or otherwise impairs the collateral security given to secure a debt, the surety may be discharged to the extent that the value of the collateral was intended to secure the debt, as the surety's risk may increase or their right to be repaid from the collateral may be jeopardized.

If a Creditor Damages Collateral Security Given to Secure a Debt