What happens if a guarantor is called upon to satisfy the debtor's obligations?

Question

Quizplus · Accepted Answer

When a guarantor is called upon to satisfy the debtor's obligations, the rights of the creditor against the debtor are exercisable by the guarantor against the debtor. The guarantor can seek recovery from the debtor for the amount paid to the creditor. This is because the guarantor's liability is secondary in nature and arises only if the debtor fails to perform its obligations. The guarantee does not get automatically discharged in such a situation.

What Happens If a Guarantor Is Called Upon to Satisfy