Compensation extinguishes obligation of surety

La. Civ. Code art. 1897

La. Civ. Code art. 1897

Art. 1897. Compensation extinguishes obligation of surety Compensation between obligee and principal obligor extinguishes the obligation of a surety. Compensation between obligee and surety does not extinguish the obligation of the principal obligor. Acts 1984, No. 331, §1, eff. Jan. 1, 1985.