Payment by debtor without notice of payment by surety

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A surety may not recover from the principal obligor, by way of subrogation or reimbursement, the amount paid the creditor if the principal obligor also pays the creditor for want of being warned by the surety of the previous payment.

In these circumstances, the surety may recover from the creditor.

Acts 1987, No. 409, §1, eff. Jan. 1, 1988.


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