Page:United States Statutes at Large Volume 47 Part 1.djvu/1317

 72d C ONGRESS. SESS. II. CH. 128 . F EBRU ARY 27, 193 3 . 1293 SEC. 1274. OBLIGATION OF GUARANTOR CAN NOT EXCEED THAT OF THE Obligation not to ex. PRINCIPAL .-Th e obligation of a guarantor must be neither larger oeedthat ofprinelpal. in amount nor in other respects mo re burdensome than that of the principal ; and if in its terms it exceeds it, it is r educ ible in prop or- tion to the principal obligation. SEC. 1275 . GUA RANTOR NOT LIABLE ON ILLEGAL CONTRACT .-A gu ar- ill egal oon trao ts. antor is not liable if the contract of the principal is unlawful ; but he is liable notwithstanding any me re personal disab ility of the prin- cipal, though the disability be such as to make the contract void against the principal. CONTINUING GUARANTY Continuing guar. anty. SEC. 1276. CONTINUING GUARANTY, WHAT .-A guaranty relating to Definition. a future li abil ity of the principal, under successive transactions, which either continue his liability or from time to time renew it after it has been satisfied, is ca lled a continuing guaranty. SEC. 1277 . REVOCATION .-A continuing guaranty may be revoked Revocation at any time by the guaranto r, in respect to future transactions, unless there is a continuing consideration as to such transacti ons which he does not renounce. EXONERATION OF GUARANTORS Exoneration of g uar antors. What d gs with SEC. 1278. WHAT DEALINGS WI TH DEBTOR EXONERATE GUARANTOR .- debtor exonerate. A guarantor is exonerated, except so far as he may be indemnified by the principal, if by any act of the creditor, without the consent of the guarantor, the original obligation of the principal is altered in any res pect , or the rem edi es or righ ts of the creditor against the principal, in respect thereto, in any way impaired or suspended. CRoss REFERENCES Exoneration of surety, see sections 1290 and 1291. Post, p.1294. Forbearance will not discharge, see section 1282. Liability of guarantor, see sections 1271 et seq. ante, p. 1292. Neglect or refusal to sue a fter request will discharge, see section 1293. Post, p. 1295. Rights of creditor where security given, see section 1299. Post, p. 1296. SEC. 1279. VOID PROMISES .-A promise by a cr editor, which fo r any Void promises . cause is void, or voidable by him at his option, does not alter the obligation or suspend or impa ir the remedy, within the meaning of section 1278. -SEC . 1280 . RESCISSION OF ALTERATION .-The rescission of an agree- tio Rescission of aitera. me nt altering the original obligation of a d ebtor, or impai ring the remedy of a creditor, does not restore the liability of a guarantor who has been exonerated by such agr eeme nt. Part Performance. SEC. 1281. PART PERFORMANCE .-The acceptance, by a creditor, of anything in partial satisfaction of an obligation, red uces the obliga- tion of a guarantor thereof, in the same measure as th at of the principal, but does not otherwise affect it. C Ross RE FERE NcEs Acc epta nce of c ons ider atio n of acc ord, see section 480. Ante, p. 1189. Acceptance of part performance in satisfaction of obligation, see section 481. ante, p. 1189. Effect of part performance, see sections 450, 454, and 481. Ante, pp. 1185, 1185, 1189 . SEC. 1282 . DELAY OF CREDITOR DOES NOT DISCHARGE GUARANTOR .- Delay does not d is. M ere delay on the part of a credit or to proceed against the principal, charge guarant o r. or to enforce any other remedy, does not exonerate a guarantor. Cross REFERENCE Notice to creditor to sue, see section 1293 . Post, p . 1295.