Information AboutSurety |
| CATEGORIES ABOUT SURETY | |
| sureties | |
| SHOPPER'S DELIGHT | |
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If the surety is required to pay or perform due to the principal's failure to do so, the law will usually give the surety a right of Subrogation , allowing him to recover the cost to him of making payment or performance on the principal's behalf, even in the absence of an express agreement to that effect between the surety and the principal. The act of becoming a surety is also called a ''guaranty''. Traditionally a guaranty was distinguished from a surety in that the surety's liability was joint and primary with the principal, wherease the guaranty's liability was ancillary and derivative, but many jurisdictions have abolished this distinction. In the United States, Under Article 3 of the Uniform Commercial Code , a person who signs a Negotiable Instrument as a surety is termed an ''accommodation party''; such a party may be able to assert defenses to the enforcement of an instrument not available to the maker of the instrument. SEE ALSO |