If the principal debtor defaults, the surety has rights against the principal debtor, third parties, and cosureties.These rights would include:
A) exoneration.
B) contribution.
C) reimbursement.
D) subrogation.
E) All of these.

Question

Quizplus · Accepted Answer

When the principal debtor defaults, the surety has various rights to mitigate their losses and seek compensation. These rights include exoneration (requesting the debtor to fulfill the obligation), contribution (seeking a fair share of payment from cosureties), reimbursement (recovering the amount paid on behalf of the debtor), and subrogation (stepping into the shoes of the creditor to exercise their rights against the debtor). Therefore, all the options listed are correct.

If the Principal Debtor Defaults, the Surety Has Rights Against