If the principal debtor defaults,the surety has rights against the principal debtor,third parties,and cosureties.These rights would include:
A) exoneration.
B) reimbursement.
C) subrogation.
D) All of these.

Question

Quizplus · Accepted Answer

The surety has several rights in case of default by the principal debtor. These rights include exoneration (the right to be discharged from liability upon payment of the debt), reimbursement (the right to seek reimbursement from the principal debtor for any amount paid to the creditor on their behalf), and subrogation (the right to step into the creditor's shoes and take over their rights against the principal debtor). Therefore, the correct answer is D, all of these.

If the Principal Debtor Defaults,the Surety Has Rights Against the Principal