Page:United States Statutes at Large Volume 47 Part 1.djvu/1318

 1294 I ndem nif ied gnar an- SEC. 1283. GUARANTOR INDEMNIFIED BY THE DEBTOR, NOT EXONER- ATED.-A guarantor who has been indemnified by the principal is liable to the creditor to the extent of the indemnity, notwithstanding that the creditor, without the assent of the guarantor, may have modified the contract or released the principal. CROSS REFERENCE Ante, pp. 1291,12 s3. See sections 1-278 and 1265 (1) . Discharge of princi- SEC. 1284. D ISCH ARGE OF PRINCIPAL BY ACT OF LAW D OES NOT DIS- pal by act of law. CHAR GE GUARANTOR .--A guarantor is not exonerated by the discharge of his principal by operation of law, w ithout t he inter vention or omission of the creditor. SURETYSHIP. Definition. 72d C ONGRESS. SESS. II. CH. 128. FEBRUARY 27, 1933. CHAPTER 61 .-SURETYSHIP WHO ARE SURETIES SEC. 1285. SURETY, WHAT .-A surety is one who at the request of another, and for the purpose of securing to him a benefit, becomes respon sible fo r the pe rformanc e by the latter of some act in f avor of a third person, or hypothecates property as security therefor. C ROSS REFE RENCE S Ante, p.1291. Guaranty, see sections 1261 et seq. Ante, p. 1290. Indemnity, see sections 1251-a et seq. Apparent principal SEC. 1286. APPARENT PRINCIPAL MAY SH OW THA T HE IS SURETY: may show sWetyship. One who appears to be a principal, whether by the terms of a writ- ten instrument or otherwise, may show that he is in fact a surety, except as against persons who have acted on the faith of his apparent character of principal. Liability of sureties. L IA BIL IT Y OF SURETIES Limit of. SEC. 1287. LIMIT of SURETY'S OBLIGATION :A surety can not be held beyond the express terms of his contract, and if such contract prescribes a penalty for its breach, he can not in any case be liable for more than the penalty. CROSS REFERENCE Ante, p. 1292. Liability of guarantors, see sections 1272 and 1273. Roles of interpreta- tion. SEC. 1288. RULES OF INTERPRETATION .-In interpreting the terms of a contract of suretyship, the same rules are to be observed as in the case of other contracts. Judgment against SEC. 1289. JUDGMENT AGAINST SURETY DOES NCT ALTER THE RELA- theeatoon not alter TICN.-Notwithstanding the recovery of judgment by a creditor against a surety, the latter st ill occupi es the rel ation of s urety. Exoneration b y pe r- SEC. 1290. SUR ETY EXONERATED BY PERF ORMA NCE OR OFFE R OF formance or offer of. PERFORMANCE.-Performance of the principal obligation, or an offer of such performance, duly made as provided in this code, exonerates a surety. CROSS REFERENCE Ante, p. 1186 . Offer of performance, see sections 453 to 473. Sure ties di scha rged by acts of creditor. SEC. 1291 . SURETY DISCHARGED BY CERTAIN ACTS CF THE CREDITOR.- k surety is exonerated- 1. In like manner with a guarantor ; 2. To the extent to which he is prejudiced by any act of the creditor which would naturally prove injurious to the remedies of