A material change in a loan contract between a creditor and a debtor dis-charges a surety only to the extent that the surety suffers a loss.

Question

Quizplus · Accepted Answer

This is known as the "rule of material alteration" and it means that if a significant change is made to the loan agreement without the surety's consent, the surety will only be released from their obligation to the extent that they are harmed by the change.

A Material Change in a Loan Contract Between a Creditor