56-2-17. Surety subrogated to rights of creditor.
If the duty of the principal to the creditor is fully satisfied, the surety, to the extent that he has contributed to this satisfaction, is subrogated to all of the following:
(1)The rights of the creditor against the principal;
(2)Subject to the rule stated in subdivision (4) of this section, the interests which the creditor has in security for the principal's performance and in which the creditor has no continuing interest;
(3)The rights of the creditor against persons other than the principal whose negligence, willful conduct or breach of contract has made them liable to the creditor for the same default, loss or damage; and
(4)The rights of the creditor against cosureties and to the creditor's interest in security held by them, but in such case the cosurety's personal liability is limited to the amount which will satisfy his duty to contribute his share of the principal's default.
Source: SL 1981, ch 357, ยง3.
Structure South Dakota Codified Laws
Title 56 - Guaranty, Suretyship and Indemnity
Section 56-2-1 - Suretyship defined.
Section 56-2-2 - Apparent principal may show that he is a surety.
Section 56-2-4 - Rights of a surety same as guarantor.
Section 56-2-5 - Performance of obligation when due by principal--Compelling by surety.
Section 56-2-7 - Property of principal first resorted to.
Section 56-2-8 - Surety exonerated in like manner with guarantor.
Section 56-2-9 - Surety exonerated by performance or offer of performance.
Section 56-2-10 - Surety exonerated to extent prejudiced by act of creditor.
Section 56-2-11 - Surety exonerated to extent prejudiced by omission of creditor.
Section 56-2-12 - Liability of surety limited by express terms of contract--Penalty for breach.
Section 56-2-13 - Suretyship relation not changed by creditor's judgment against surety.