True/False
When a surety pays a claim that it is obligated to pay, it automatically acquires the claim and the rights of the creditor; this is known as subrogation.
Correct Answer:
Verified
Correct Answer:
Verified
Related Questions
Q10: Standby letters of credit are used only
Q20: If a debtor is about to leave
Q43: When a suretyship or guaranty contract is
Q43: Suretyship, guaranty, and indemnity contracts all create
Q45: Sound business practice dictates the use of
Q47: A letter of credit must be in
Q49: A surety that has made payment of
Q50: Typically, there are how many parties to
Q51: If an issuer requests its correspondent bank
Q53: If there are two or more sureties