If, at a time a surety's obligation has matured, the principal can satisfy the obligation but refuses to do so, the surety is entitled to a court order requiring the principal to perform. This is known as:
A) contribution.
B) perfection.
C) foreclosure.
D) exoneration.
E) subrogation.

Question

Quizplus · Accepted Answer

Exoneration is the right of the surety to be released from the obligation to pay if the principal can satisfy the obligation, but refuses to do so. The surety can seek a court order requiring the principal to perform, thereby releasing the surety from further liability. Contribution is the right of a co-surety to recover from other co-sureties their proportionate share of an obligation that has been paid. Perfection refers to the process of establishing and recording a security interest in collateral to give the creditor the right to take possession or sell the collateral in case of default. Foreclosure is the process of enforcing a security interest in real property through a judicial sale or auction. Subrogation is the right of the surety who has paid the debt to step into the shoes of the creditor and recover the amount paid from the principal or any other person who may be liable.

If, at a Time a Surety's Obligation Has Matured, the Principal