Suretyship

Question 1

compensated surety

Answer 1

generally liable on the debt unless the surety’s risk of loss is increased due to a material change in the contract

Question 2

uncompensated surety

Answer 2

AKA gratuitous surety

is relieved anytime the creditor makes a change to the agreement

Question 3

exoneration

Answer 3

the surety may sue to principal debtor to compel them to make payment to the creditor

Question 4

indemnification

Answer 4

the surety has the right to demand reimbursement from the principal debtor for amounts paid to the creditor

Question 5

subrogation

Answer 5

the surety obtains all creditor claims against the debtor, including the right to collateral pledged by the debtor to the creditor to secure the loan

Question 6

right of contribution

Answer 6

a cosurety who pays has right to obtain reimbursement from other cosureties

Question 7

writ of attachment

Answer 7

judicial remedy in which a creditor is allowed to take possession of personal property of the debtor prior to getting a judgement for the past-due debt