A surety that has made payment of a claim for which it was liable as surety is entitled to indemnity from the principal debtor.

Question

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This is a basic principle of surety law. When a surety pays a claim on behalf of the principal debtor, the surety is entitled to be reimbursed by the debtor for the amount paid. This right to indemnity is often included in the surety agreement or bond.

A Surety That Has Made Payment of a Claim for Which