Victorian Consolidated Legislation

Supreme Court Act 1986 - SECT 52

Surety discharging liability to be entitled to securities

52. Surety discharging liability to be entitled to securities



(1) A person who is-

   (a)  surety for the debt or duty of another; or

   (b)  liable with another for a debt or duty-

and who pays that debt or performs that duty, is entitled to have assigned to
that person or to a trustee for that person every judgment specialty or other
security held by the creditor in respect of that debt or duty.

(2) Subsection (1) applies whether or not the judgment specialty or other
security is taken at law to have been satisfied by the payment of the debt or
the performance of the duty.

(3) A person who pays a debt or performs a duty as referred to in subsection
(1) is entitled-

   (a)  to stand in the place of the creditor; and

   (b)  to use all the remedies of the creditor; and

   (c)  if necessary and on a proper indemnity, to use the name of the
        creditor-

in any proceeding to obtain from the principal debtor or any co-surety,
co-contractor or co-debtor (as the case requires) indemnity for the advances
made and loss sustained by the person who paid the debt or performed the duty.

(4) The payment of the debt or the performance of the duty by a surety is not
a defence to any proceeding referred to in subsection (3).

(5) A co-surety, co-contractor or co-debtor is not entitled to recover from
another co-surety, co-contractor or co-debtor more than the proportion to
which, as between those parties themselves, that person is justly liable.

Division 6-Apportionment