Discharge of a surety occurs:
A)if the creditor extends the time of the debt with the consent of the surety.
B)if the creditor continues to hold the collateral security of the debtor.
C)in case of any reduction in the rate of interest.
D)in the case of return of collateral security to the debtor.

Question

Quizplus · Accepted Answer

The discharge of a surety occurs when the creditor returns the collateral security to the debtor, as it releases the surety from their obligation.

Discharge of a Surety Occurs