A guarantor is entitled to receive from the debtor all outlays made on behalf of the guaranty arrangement.

Question

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A guarantor, after fulfilling the obligations under the guaranty by paying the debtor's debt, is entitled to receive from the debtor all the amounts paid out on behalf of the guaranty arrangement, including any expenses or losses incurred. This is based on the principle of subrogation, where the guarantor steps into the shoes of the creditor and gains the right to be reimbursed by the debtor.

A Guarantor Is Entitled to Receive from the Debtor All