Page:United States Statutes at Large Volume 76A.djvu/315

–219– -219vency of the priiK-ipal in its effect upon the riglits and obligations of the guarantor. Subchapter IV—Liability of Guarantors § 3751. Conditional and unconditional guaranties A guaranty is to be deemed unconditional unless its terms import some condition precedent to the liability of the guarantor. § 3752. Liability of guarantor of payment or performance A guarantor of payment or performance is liable to the guarantee immediately upon the default of the principal, and without demand or notice. § 3753. Liability of guarantor of conditional obligation Where one guarantees a conditional obligation, his liability is commensurate with that of the principal, and he is not entitled to notice of the default of the principal, unless he is unable, by the exercise of reasonable diligence, to acquire information of the default, and the creditor has actual notice thereof. § 3754. Guarantor's obligation commensurate with that of principal The obligation of a guarantor must be neither larger in amount nor in other respects more burdensome than that of the principal; and if in its terms it exceeds it, it is reducible in proportion to the principal obligation. § 3755. Illegal contract or personal disability of principal A guarantor is not liable if the contract of the principal is unlawful; but he is liable notwithstanding any mere personal disability of the principal, though the disability be such as to make the contract void against the principal. Subchapter V—Continuing Guaranty § 3771. Definition of continuing guaranty A guaranty relating to a future liability of the principal, under successive transactions, which either continue his liability or from time to time renew it after it has been satisfied, is called a continuing guaranty. § 3772. Revocation A continuing guaranty may be revoked at any time by the guarantor, in respect to future transactions, unless there is a continuing consideration as to the transactions which he does not renounce. Subchapter VI—Exoneration of Guarantors § 3791. Alteration of original obligation; suspension of remedies or rights 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 respect, or the remedies or rights of the creditor against the principal, in respect thereto, are in any way impaired or suspended. § 3792. Void promises A promise by a creditor, which for any cause is void, or voidable by him at his option, does not alter the obligation or suspend or impair the remedy, within the meaning of section 3791 of this title.

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