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Other Prin Ciples Concerning Contribution


OTHER PRIN CIPLES CONCERNING CONTRIBUTION. When one of several co-sureties afterwards becomes the principal by assignment, with the knowledge and consent of the other sureties, he is no longer a co-surety, buf liable for the whole debt to a co surety who has been compelled to pay it. (Gray v. McDonald, 19 Wis., 213.) In the case of a co-surety, as in the case of an individual surety, care must be taken on paying the debt to see that the principal and the other sureties are liable, for if they are not contribution cannot be recovered. (Russell v. Failor, i Ohio St., 327.) Indemnity from the principal secured by one co surety after all signed and before the debt has been paid, and without any previous agreement for indemnity, inures to the benefit of all the sureties, and the holder is a trustee for all. (Seibert v. Thompson, 8 Kans., 65; McCune v. Belt, 45 Mo., 174.) Such a surety on paying the debt out of the indemnity fund, could recover from the co-surety one-half the amount remaining after exhausting the fund. (Currier v. Fellows, 27 N. H., 366.) The surety with indemnity must not release his lien or negligently lose it, or he will thereby discharge his co-surety to the extent that he is injured. (Ram sey v. Lewis, 3o Barb., 403; Carpenter v. Kelly, 9 Ohio, 106.) If a co-surety obtain indemnity from the principal after the debt has been paid by the co-sureties in equal proportion, it is for his indi vidual benefit, since the payment by each of his proportion annulled the equitable right to contribu tion, and each became a separate creditor of the principal. (Harrison v. Phillips, 46 Mo., 520.)

principal and co-surety