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

Question

Quizplus · Accepted Answer

All of the above rights belong to the surety if the principal debtor defaults.

Exoneration means the surety is discharged from all obligations once the principal debtor has fulfilled their obligations.

Reimbursement means the surety can recover any expenses or payments made on behalf of the principal debtor.

Subrogation means the surety has the right to step into the shoes of the creditor and pursue any rights or remedies against the principal debtor.

Contribution means the surety can recover a portion of the debt from cosureties or other third parties who are also liable for the debt.

If the Principal Debtor Defaults,the Surety Has Rights Against the Principal