Title 10

Any change in the nature or terms of a contract is called a “novation”; such novation, without the consent of the surety, discharges him. History. Orig. Code 1863, § 2130; Code 1868, § 2125; Code 1873, § 2153; Code 1882, § 2153; Civil Code 1895, § 2971; Civil Code 1910, § 3543; C…

The surety may tender to the creditor the amount of his debt and demand that the evidence of and the securities for the same be delivered up to him to be enforced against his principal or cosureties; and a failure of the creditor to comply, when within his power, shall operate to…

Any surety, guarantor, or endorser, at any time after the debt on which he or she is liable becomes due, may give notice in writing to the creditor, his or her agent, or any person having possession or control of the obligation, to proceed to collect the debt from the principal o…

The creditor shall pursue his remedy against the surety within the time prescribed by law; and no payment or promise by the principal or by a cosurety shall extend the obligation of the surety or the remedy of the creditor against him. History. Orig. Code 1863, § 2135; Code 1868,…

If by an act of the creditor the surety is discharged and in ignorance of the fact of the discharge the surety promises to pay, the promise shall not be binding. History. Orig. Code 1863, § 2136; Code 1868, § 2131; Code 1873, § 2158; Code 1882, § 2158; Civil Code 1895, § 2976; Ci…

Code Sections 10-7-20 through 10-7-26 shall be superseded to the extent of any conflict by the provisions of Article 3 of Title 11, the “Uniform Commercial Code — Negotiable Instruments,” relating to the discharge of any party to a negotiable instrument. History. Ga. L. 1997, p. 1…

When the fact of suretyship appears on the face of the contract, the creditor shall sue out process against the surety and enter up judgment against him as such. History. Laws 1845, Cobb’s 1851 Digest, p. 598.; Laws 1850, Cobb’s 1851 Digest, p. 600.; Code 1863, § 2137; Code 1868,…

It shall be lawful to enter judgment against principal and sureties at the same time, as in cases of appeal, in all cases in law or equitable proceedings when a bond has been given by the losing party conditioned to pay the eventual condemnation money in the action; and it shall …

Co. v. American Druggist Ins. Co., 166 Ga. App. 509, 304 S.E.2d 471, 1983 Ga. App. LEXIS 2225 (1983). Estoppel. — Indemnitors were estopped from contending that the insurer’s failure to pay the owner’s claim prior to trial constituted a breach of fiduciary duty on the insurer’s pa…

(a) Where a payment bond or security deposit is provided pursuant to a contract for the construction of an improvement to property other than a public work, every person entitled to claim the protection of the payment bond or security deposit who has not been paid in full for lab…

— In light of the similarity of the statutory provisions, decisions under former Code Section 11-3-606 are included in the annotations for this Code section. The discharge under O.C.G.A. § 113-605 is only pro tanto and releases the surety only to the extent that the surety proves…

A surety or endorser is entitled to the process of attachment against his principal before payment of the debt under the same circumstances as any other creditor. History. Orig. Code 1863, § 2138; Code 1868, § 2133; Code 1873, § 2160; Code 1882, § 2160; Civil Code 1895, § 2979; C…

Dykes, 214 Ga. App. 792, 449 S.E.2d 305, 1994 Ga. App. LEXIS 1059 (1994). Voluntary payment entitles surety to proceed against principal. — Voluntary payment by a surety of a past due debt entitles the surety to proceed immediately against the principal for the amount paid in the…

If the payment was made after judgment and the principal had notice of the pendency of the action against the surety, the amount of such judgment shall be conclusive against the principal as to the amount for which the surety was bound. If the payment was not made after judgment,…

If the contract was originally usurious and the surety in making payment includes the usury, he shall recover the same from the principal unless previous to the payment he had notice of the intention of the principal to resist usury. History. Orig. Code 1863, § 2141; Code 1868, §…

If the principal executes any mortgage or gives other security to the surety or endorser to indemnify him against loss by reason of his suretyship, the surety or endorser may proceed to foreclose such mortgage or enforce such other lien or security as soon as judgment shall be re…

If the fact of suretyship does not appear on the face of the contract, it may be proved by parol, either before or after judgment (the creditor not being delayed in his remedy by such collateral issue between the principal and his surety), if before judgment the surety shall give…

— Former Civil Code 1910, §§ 3551, 3553, 3559, and 3560 were remedies to which the surety can resort for the surety’s protection, independently of any voluntary action by the creditor. McMillan v. Heard Nat’l Bank, 19 Ga. App. 148, 91 S.E. 235, 1917 Ga. App. LEXIS 36 (1917). Sepa…

Any surety on the original contract, or on stay of execution, or on appeal, or in any other way, or the representative of a deceased surety, who shall have paid off or discharged the judgment or execution in whole or in part and shall have the fact of such payment by him entered …

If the surety is sued separately from his principal, on payment by him of the judgment against him, he shall be entitled to control the judgment and execution against his principal in the same manner as if the judgment and execution were joint; and, if he does not appear as suret…

If the surety pays off the debt pending the action against the principal and himself or against the principal alone, such payment shall operate only to cause the action to proceed for the benefit of such surety; and the judgment may be entered in the name of the original plaintiff…

Where several are sureties for the same principal for the same sum of money, either by one or by distinct instruments, and one pays more than an equal share of the sum, he may compel contribution from his cosureties. If one of the cosureties is insolvent, the deficiency in his sha…

The sum recovered as contribution shall bear interest from the time the original obligation was paid by the surety and shall be deemed and held a liquidated demand. History. Orig. Code 1863, § 2152; Code 1868, § 2147; Code 1873, § 2174; Code 1882, § 2174; Civil Code 1895, § 2993;…

A surety suing for contribution must first account for all money or other things received from the principal to indemnify him against loss; and, if he has paid the entire debt, he may compel his cosurety to transfer to him any mortgage or other security taken from the principal fo…

Code Sections 10-7-40 through 10-7-49 shall apply to cases where there is more than one surety, so as to enable a surety discharging a joint debt, in whole or in part, either pending the action or after joint or several judgments, to control the same against his cosureties for th…

Every endorser who shall pay off and discharge the debt on which he is endorser, either pending the action or after judgment, whether the judgment against the principal and the endorsers is joint or several, shall be entitled to control the judgment and execution founded thereon …

When the surety does not appear to be such in the judgment and execution, the lien of such judgment, when controlled by the surety, shall not interfere with bona fide purchasers without notice from the principal, whose rights were vested before the order giving control to the sure…

A surety who has paid the debt of his principal shall be subrogated, both at law and in equity, to all the rights of the creditor and, in a controversy with other creditors, shall rank in dignity the same as the creditor whose claim he paid. History. Ga. L. 1857, p. 111, § 4; Cod…

A surety who has paid the debt of his principal shall also be entitled to be substituted in place of the creditor as to all securities held by him for the payment of the debt. History. Orig. Code 1863, § 2156; Code 1868, § 2151; Code 1873, § 2177; Code 1882, 10-7-57 § 2177; Civil…

Relative rights of creditor and surety, §§10-7-20 to 10-7-31. Rights of surety against principal, cosureties and third persons, §§10-7-40 to 10-7-57. DECEPTIVE TRADE PRACTICES —Cont’d Emblems. Benevolent organizations, charities, fraternal organizations, etc., §§10-1-470 to 10-1-…