Debitor - Creditor : Suerity Flashcards
1
Q
Sub surety
A
Surety A only after Surety B
2
Q
Co surety
A
Surety A + Surety B equity liable
3
Q
How to compute co sureties amounts
A
Equally liable in extent of guaranteed amounts
Subtract any bankruptcy from denominator
4
Q
Right of creditor
A
Go after collaterals
After debtor
After surety
5
Q
Rights of surety
A
Exoneration - right of surety to force debtor to pay
Subrogatuon - right of surety to have rights of debtor and creditor
Reimbursement - surety seek reimbursement from debtor
Contribution - right from co surety prorated share
6
Q
Surety still pays if following
No release
A
Fraud by debtor Miss presentation Changes in loan terms Release of debtor Bunkrupcy of debtor Insolvency Death Incapacity Lack of enforcement Creditors failure to give notice of default Failure of creditor to resort collaterals
7
Q
Surety release if
A
Debtor pays Release collaterals Substitution of debtor Fraud by creditor Refusal by creditor to accept payment from debtor Change in loan term - uncompensated surety only Statue of fraud Stature of limitation
