If a principal posts security for the performance of an obligation to a creditor,the creditor must not surrender that security without the consent of sureties.

Name: If a principal posts security for the performance of an obligation to a creditor,the creditor must not surrender that security without the consent of sureties.
Brand: Quizplus
Rating: 4.8 (39 reviews)

Question

Quizplus · Accepted Answer

This is known as the right of subrogation, where the sureties have a legal right to the security posted by the principal and cannot be deprived of it without their consent.

If a Principal Posts Security for the Performance of an Obligation