Any act of the creditor, either before or after judgment against the principal, which injures the surety or increases his risk or exposes him to greater liability shall discharge him; a mere failure by the creditor to sue as soon as the law allows or neglect to prosecute with vigor his legal remedies, unless for a consideration, shall not release the surety.
History. Orig. Code 1863, § 2131; Code 1868, § 2126; Code 1873, § 2154; Code 1882, § 2154; Civil Code 1895, § 2972; Civil Code 1910, § 3544; Code 1933, § 103-203.
Law reviews.
For article, “Georgia Law Needs Clarification: Does it Take Willful or Wanton Misconduct to Defeat a Contractual ‘Exculpatory’ Clause, or Will Gross Negligence Suffice,” see 19 Ga. St. B. J. 10 (Feb. 2014).
Structure Georgia Code
Article 2 - Relative Rights of Creditor and Surety
§ 10-7-20. Effect of Release of or Compounding With Surety
§ 10-7-21. “Novation” Defined; Effect on Surety’s Liability
§ 10-7-22. Discharge of Surety by Increase of Risk
§ 10-7-24. Refusal to Sue Principal After Notice by Surety as Discharge
§ 10-7-25. Extending Liability
§ 10-7-26. Promise to Pay in Ignorance of Discharge
§ 10-7-27. Provisions of Uniform Commercial Code to Control
§ 10-7-28. Process Sued Out and Judgment Entered Against Surety as Such
§ 10-7-29. Judgment Against Principal and Surety at Same Time
§ 10-7-30. Bad Faith Refusal of Corporate Surety to Perform Suretyship Contract