A surety is a person who agrees to be responsible for the debt or obligation of another person. When someone agrees to be a surety, they take on a number of legal obligations and also have certain rights.
Rights of Surety
- Right to indemnity: A surety has the right to be reimbursed for any amount paid on behalf of the principal debtor. The surety is entitled to recover from the principal debtor any amount paid to the creditor on their behalf.
- Right to contribution: If there are multiple sureties for a debt, each surety has the right to claim contribution from the other sureties. This means that each surety is only responsible for a proportionate share of the debt.
- Right of subrogation: When a surety pays off the debt of the principal debtor, they have the right to step into the shoes of the creditor and enforce the debt against the principal debtor.
- Right to notice: A surety has the right to be notified of any default by the principal debtor. If the creditor fails to provide notice, the surety may be released from their obligations.
- Right to discharge: A surety has the right to be released from their obligations if the creditor agrees to discharge the principal debtor or if the terms of the original contract have been materially altered without the consent of the surety.
