Upon payment of the principal debtor's entire obligation, the surety is __________ the rights of the creditor.

Question

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Subrogation is the legal term used when a creditor transfers their rights to a third party (in this case, the surety), who then becomes entitled to the same rights and remedies as the original creditor. Therefore, the surety is subrogated to the rights of the creditor upon payment of the principal debtor's entire obligation.

Upon Payment of the Principal Debtor's Entire Obligation, the Surety