Page:United States Statutes at Large Volume 47 Part 1.djvu/1319

 72d C ONGRESS. SESS. II. CH. 128 . FEBRUARY 27, 1933 . the surety or inconsis tent with his rights, or which lessens his security ; or 3 . To the extent to which he is prejudiced by an omission of the creditor to do anything, when required by the surety, which it is his duty to do. CROSS REFERENCES Exo neration of gua rantor, see sec tions 1278 et seq. Omi ssion of credit or to pr oceed a gainst principa l, see section 1293. RIGH TS OF SUR ETIE S S EC. 1292 . SURETY HAS RIG HTS OF GUARANTOR.-A surety has all t he r i g h t s o f a guarantor, whether he become personall y responsible or not. SEC. 1293. SURETY MAY REQUIRE THE CREDITOR TO PROCEED AGAINST THE P RINCI PAL .-A surety may re qu ire his creditor to proceed against the principal, or to pursue any other remedy in his power which the surety can not himself purs ue and which would lighten his burden ; and if' in such, case the creditor neglects to do so, the surety is exonerated to the extent to which he is thereby prejudiced. 'So in original. Ante, p . 1293. Rights of sureties. Has rig hts of guaran. tor. May require creditor to proceed against prin- cipal CR OSS REF EREN CE Mere delay by creditor to pursue principal does not discharge surety, see Ante, pp . 1293,1294. sections 1282 and 1291 (1) . SEC. 1294. SURETY MAY COMPEL PRINCIPAL TO PERFORM OBLIGATIONS, p ~ a compel rinci- WHE N DUE .-A surety may compel his principal to perform the obli- tions. gation when due. Cross REFERENCE Su bstitu te for equit able a ction, see se ction 1293. S EC. 1295. A PRINCIPAL BOUND TO REIMBURSE HIS SURETY.-If a Exoneration. surety satisfies the principal obligation, or any part thereof, whether with or without l egal proceedings, th e principal is boun d to reim- burse what he has disbursed, including necessary costs and expenses ; but the surety has no claim for reimbursement against other per- sons, though they may have beer. benefited by his act, except as prescribed by section 1296. SEC. 1296: THE SURETY ACQ UI RES THE RIGHT OF THE CREDITOR .-A surety, upon satisfying the obligation of the principal, is entitled to enforce every remedy which the cre ditor then has against the principal to the extent of reimbursing what he has expended, and also to require all his cosureties to contribute thereto, without regard to the order of time in which they became such. SEC. 1297. SURETY ENTITLED TO BENEFIT OF SECURITIES HELD BY Surety entitled to se- cRDrroR.'-A surety is entitled to the benefit of every security for ~ita~ .es-heidby the performance of the principal obligation held by the creditor, or by a cosurety at the time of entering into the contract of suretyship, or acquired by him afterwards, whether the surety was a ware of the security or not. SEC. 1298. THE PROPERTY OF PRINCIPAL TO BE TAKEN FIRST .-When- Pro ty of principal to be taken first. ever property of a surety is hypothecated with property of the prin- cipal, the surety is entitled to have the property of the principal first applied to the discharge of the obligation. Sub roga tion. 1295