Upon paying the principal debtor's entire obligation, the surety is __________ the rights of the creditor.
A) subject to
B) subrogated to
C) exonerated by
D) set off by

Question

Quizplus · Accepted Answer

Subrogation is the legal principle where the surety, upon paying the debt of the principal debtor, steps into the shoes of the creditor and acquires the creditor's rights against the debtor. This allows the surety to seek reimbursement from the principal debtor.

Upon Paying the Principal Debtor's Entire Obligation, the Surety Is