If a surety pays the debt owed to a creditor, then the surety acquires any rights that the creditor had against the debtor.

Question

Quizplus · Accepted Answer

This is true according to the principle of subrogation. When a surety pays the debt of a debtor, they step into the shoes of the creditor and acquire any rights or remedies that the creditor had against the debtor. This entitles the surety to seek repayment from the debtor and to take legal action against the debtor, if necessary, to recover the amount paid.

If a Surety Pays the Debt Owed to a Creditor