When someone acts as a surety for a debt, they have certain rights against the creditor. These rights are designed to protect the surety and ensure that the creditor does not take advantage of their position.
Some of the Rights of a Surety Against the Creditor include:
- Right to demand proof of the debt: A surety has the right to demand proof of the debt from the creditor. This includes evidence of the original debt, as well as any interest and fees that have been added to the debt over time.
- Right to demand information about the debtor: A surety has the right to request information about the financial situation of the principal debtor. This can help the surety to determine whether the debtor is likely to be able to repay the debt.
- Right to enforce the creditor’s duties: A surety has the right to enforce any duties that the creditor owes to the principal debtor. For example, if the creditor has agreed to provide the debtor with a certain amount of time to repay the debt, the surety can insist that the creditor honors this agreement.
- Right to limit liability: A surety has the right to limit their liability for the debt. This can include setting a maximum amount for which they are willing to act as a surety, or requiring the creditor to take certain steps to minimize the risk of default by the principal debtor.
- Right to set off: A surety has the right to set off any amounts that the creditor owes to the principal debtor against the debt owed by the principal debtor to the creditor. This can help to reduce the amount for which the surety is liable.
