Upon the surety's payment of the principal debtor's entire obligation,the surety obtains all of the rights the creditor has against or through the principal debtor.The term for the surety's "stepping into the shoes" of the creditor is known as:
A) contribution.
B) subrogation.
C) reimbursement.
D) exoneration.

Question

Quizplus · Accepted Answer

This process is known as subrogation, where the surety assumes the rights and remedies of the creditor against the principal debtor upon paying off the debt. Contribution is the sharing of responsibility between multiple debtors, reimbursement is the act of reimbursing someone for expenses, and exoneration is the release or discharge from a debt or obligation.

Upon the Surety's Payment of the Principal Debtor's Entire Obligation,the