Asked by Helmut Andres Florencia Roldan on Jun 04, 2024

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Ran is a surety for Su's loan from Tempo Credit. When Su pays the debt owed to the lender, Ran's right of subrogation entitles the surety to

A) any right that the creditor had against the debtor.
B) a proportionate share of any overpayment due to the loan's prepayment.
C) all outlays made on behalf of the suretyship arrangement.
D) title to and possession of the property serving as collateral for the loan.

Subrogation

The legal process by which one party assumes the rights of another party to recover debts or damages paid on their behalf.

Surety

A surety refers to a person or entity that takes responsibility for another's performance of an undertaking, for example, guaranteeing the payment of a debt.

Prepayment

The act of repaying a loan or part of a loan before its due date, which can sometimes lead to penalties or the waiving of future interest.

  • Understand the rights of contribution and subrogation within co-surety arrangements and suretyship.
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MA
Mohamad ali El haririJun 09, 2024
Final Answer :
A
Explanation :
Subrogation entitles the surety to step into the shoes of the creditor and claim any rights the creditor had against the debtor once the debt is paid. This does not necessarily include rights to overpayments, outlays made for the suretyship, or title to collateral property, unless those were rights of the creditor against the debtor.