Release of one co-surety does not discharge others.— Where there are co-sureties, a release by the creditor of one of them does not discharge the others; neither does it free the surety so released from his responsibility to the other sureties.
Release of one co-surety does not discharge others
If there are many people who have given guarantee together (co-sureties), and the lender (creditor) decides to release (free) one person from the guarantee, it does not mean the others are also free. The remaining people are still responsible to pay. Also, the person who is released is still responsible towards the other co-sureties.
Example:
(a) R, S, and A together give a guarantee for a loan taken by M. Later, the bank decides to release R from the guarantee.
- S and A are still responsible to pay the loan if M does not pay.
- R may still have to settle his share with S and A if they end up paying more.
(b) A, B, and C give guarantee for R’s loan. Later, the bank says A is free from the guarantee.
- B and C are still responsible if R does not pay.
- If B and C pay the full loan, they can still ask A to pay his share to them.
(c) Four colleagues guarantee a loan: N, P, R, and S. The bank releases N.
- P, R, and S are still fully responsible.
- If they pay the loan, they can still ask N to pay her portion.