Right To Full Reimbursement By The Surety

Category: Obligations and Contracts

Right To Full Reimbursement By The Surety

The right under Article 2066, NCC which assures the guarantor who pays for a debtor must be indemnified, such indemnity comprising of among others, the total amount of the debt. Furthermore, Article 2067 of the Civil Code likewise establishes that the guarantor who pays is subrogated by virtue thereof to all the rights which the creditor had against the debtor. (Escaño, et al. v. Ortigas, Jr., G.R. No. 151953, June 29, 2007, Tinga, J).