Asked by Helmut Andres Florencia Roldan on Jun 04, 2024
Verified
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.
Verified Answer
Learning Objectives
- Understand the rights of contribution and subrogation within co-surety arrangements and suretyship.
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