BLS 442 Lecture Notes - Lecture 8: Subrogation
4 Mar 2015
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A and b have primary, joint, several liability (can get full amount from a or. B can only get half of amount back from a. Surety: will pay the debtors debt if the debtor defaults (not liable unless a defaults) Guarantor for collection: b will pay debtors debt if the debtor defaults and if the creditor is unable to collect from a. B can sue a for full amount. Guarantor for payment: b does not sign at same time as a, primary liability. If instrument just says guarantor, b is considered guarantor for payment. Defenses (in case of holder v maker or holder v drawer) Real (universal): defeat mere holder and hdc. Material alteration: partial real (ex. if amount was altered, only have to pay original amount (original tenor)) Lack of title: forged indorsement of order paper. If maker or drawer is negligent: converts real defense to a personal defense. Personal (limited): defeat mere holder, lose against hdc.
