Report No. 13

Section 141.- For section 141 of the principal Act, the following section shall be substituted, namely:-

"141. Surety's right to benefit of creditor's securities.

If the debt or liability owed by the principal debtor to the creditor has been paid or discharged in full, the surety is entitled to the benefit of every security which the creditor has against the principal debtor, whether such security was or was not in existence at the time when the contract of suretyship was entered into, and whether such security was received by the creditor before, contemporaneously with or after the contract of suretyship was entered into, and whether the surety knows of the existence of such security or not; and if the creditor loses or, without the consent of the surety, parts with such security, the surety is discharged to the extent of the value of the security."