Ran is a surety for Su's loan from Tempo Credit. When Su pays the debt owed to the lender, Ran's right of subrogation entitles the surety to
A)any right that the creditor had against the debtor.
B)a proportionate share of any overpayment due to the loan's prepayment.
C)all outlays made on behalf of the suretyship arrangement.
D)title to and possession of the property serving as collateral for the loan.

Question

Quizplus · Accepted Answer

Subrogation entitles the surety to step into the shoes of the creditor and claim any rights the creditor had against the debtor once the debt is paid. This does not necessarily include rights to overpayments, outlays made for the suretyship, or title to collateral property, unless those were rights of the creditor against the debtor.

Ran Is a Surety for Su's Loan from Tempo Credit