Sec. 2. If the creditor or obligee does not: (1) proceed within a reasonable time to bring an action upon the contract; and (2) prosecute the action to judgment and execution; the surety is discharged from all liability on the contract. [Pre-1998 Recodification Citation: 34-1-55-2.] As added by P.L.1-1998, SEC.17.
Discharge of surety
Ind. Code § 34-22-1-2, under Remedies of Sureties Against Their Principals.
Ind. Code § 34-22-1-2