reglab/statecodes huggingface dataset:
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 5. Subagents › 28-10-502. Effect of unauthorized employment of subagent

28-10-502. Effect of unauthorized employment of subagent.
If an agent employs a subagent without authority, the agent is a principal and the subagent is the agent's agent and the principal of the agent has no connection with the subagent. A mere agent of an agent is not responsible as such to the principal of the agent.
History: En. Secs. 2743, 3141, Civ. C. 1895; re-en. Secs. 5289, 5457, Rev. C. 1907; re-en. Secs. 7804, 7972, R.C.M. 1921; Cal. Civ. C. Secs. 2022, 2350; Field Civ. C. Secs. 1044, 1260; re-en. Secs. 7804, 7972, R.C.M. 1935; R.C.M. 1947, 2-112, 2-302; amd. Sec. 804, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 5. Subagents › 28-10-503. Effect of authorized employment of subagent

28-10-503. Effect of authorized employment of subagent.
A subagent lawfully appointed represents the principal in like manner with the original agent, and the original agent is not responsible to third persons for the acts of the subagent.
History: En. Sec. 3142, Civ. C. 1895; re-en. Sec. 5458, Rev. C. 1907; re-en. Sec. 7973, R.C.M. 1921; Cal. Civ. C. Sec. 2351; Field Civ. C. Sec. 1261; re-en. Sec. 7973, R.C.M. 1935; R.C.M. 1947, 2-303.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-601. Accrual of rights and liabilities to principal

28-10-601. Accrual of rights and liabilities to principal.
An agent represents the agent's principal for all purposes within the scope of the agent's actual or ostensible authority, and all the rights and liabilities that would accrue to the agent from transactions within that limit, if the transactions had been entered into on the agent's own account, accrue to the principal.
History: En. Sec. 3110, Civ. C. 1895; re-en. Sec. 5442, Rev. C. 1907; re-en. Sec. 7957, R.C.M. 1921; Cal. Civ. C. Sec. 2330; Field Civ. C. Sec. 1245; re-en. Sec. 7957, R.C.M. 1935; R.C.M. 1947, 2-201; amd. Sec. 805, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-602. Principal's responsibility for agent's negligence, omissions, and wrongs

28-10-602. Principal's responsibility for agent's negligence, omissions, and wrongs.
(1) Unless required by or under the authority of law to employ that particular agent, a principal is responsible to third persons for the negligence of the principal's agent in the transaction of the business of the agency, including wrongful acts committed by the agent in and as a part of the transaction of business, and for the agent's willful omission to fulfill the obligations of the principal.
(2) A principal is not responsible for other wrongs committed by the principal's agent except those mentioned in subsection (1) unless the principal has authorized or ratified the acts, even though they are committed while the agent is engaged in the principal's service.
History: En. Secs. 3118, 3119, Civ. C. 1895; re-en. Secs. 5450, 5451, Rev. C. 1907; re-en. Secs. 7965, 7966, R.C.M. 1921; Cal. Civ. C. Secs. 2338, 2339; Field Civ. C. Secs. 1253, 1254; re-en. Secs. 7965, 7966, R.C.M. 1935; R.C.M. 1947, 2-209, 2-210; amd. Sec. 806, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-603. When instrument binds principal

28-10-603. When instrument binds principal.
An instrument within the scope of an agent's authority by which an agent intends to bind the agent's principal does bind the principal if that intent is plainly inferable from the instrument itself.
History: En. Sec. 3117, Civ. C. 1895; re-en. Sec. 5449, Rev. C. 1907; re-en. Sec. 7964, R.C.M. 1921; Cal. Civ. C. Sec. 2337; Field Civ. C. Sec. 1252; re-en. Sec. 7964, R.C.M. 1935; R.C.M. 1947, 2-208; amd. Sec. 807, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-604. When notice to principal or agent is notice to the other

28-10-604. When notice to principal or agent is notice to the other.
As against a principal, both principal and agent are deemed to have notice of whatever either has notice of and ought, in good faith and the exercise of ordinary care and diligence, to communicate to the other.
History: En. Sec. 3112, Civ. C. 1895; re-en. Sec. 5444, Rev. C. 1907; re-en. Sec. 7959, R.C.M. 1921; Cal. Civ. C. Sec. 2332; Field Civ. C. Sec. 1247; re-en. Sec. 7959, R.C.M. 1935; R.C.M. 1947, 2-203.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-605. Extent to which principal bound when agent exceeds authority

28-10-605. Extent to which principal bound when agent exceeds authority.
When an agent exceeds the agent's authority, the agent's principal is bound by the agent's authorized acts only so far as the authorized acts can be plainly separated from those that are unauthorized.
History: En. Sec. 3113, Civ. C. 1895; re-en. Sec. 5445, Rev. C. 1907; re-en. Sec. 7960, R.C.M. 1921; Cal. Civ. C. Sec. 2333; Field Civ. C. Sec. 1248; re-en. Sec. 7960, R.C.M. 1935; R.C.M. 1947, 2-204; amd. Sec. 808, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-606. Extent to which principal bound by acts under ostensible authority

28-10-606. Extent to which principal bound by acts under ostensible authority.
A principal is bound by acts of the principal's agent under a merely ostensible authority to those persons only who have in good faith and without ordinary negligence incurred a liability or parted with value upon the faith of the authority.
History: En. Sec. 3114, Civ. C. 1895; re-en. Sec. 5446, Rev. C. 1907; re-en. Sec. 7961, R.C.M. 1921; Cal. Civ. C. Sec. 2334; Field Civ. C. Sec. 1249; re-en. Sec. 7961, R.C.M. 1935; R.C.M. 1947, 2-205; amd. Sec. 809, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-607. When principal bound by incomplete execution of authority

28-10-607. When principal bound by incomplete execution of authority.
A principal is bound by an incomplete execution of an authority when it is consistent with the whole purpose and scope thereof, but not otherwise.
History: En. Sec. 3111, Civ. C. 1895; re-en. Sec. 5443, Rev. C. 1907; re-en. Sec. 7958, R.C.M. 1921; Cal. Civ. C. Sec. 2331; Field Civ. C. Sec. 1246; re-en. Sec. 7958, R.C.M. 1935; R.C.M. 1947, 2-202.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-608. Rights of person who deals with agent without knowledge of agency

28-10-608. Rights of person who deals with agent without knowledge of agency.
A person who deals with an agent without knowing or having reason to believe that the agent acts as an agent in the transaction may set off against any claim of the principal arising out of the transaction all claims that the person might have set off against the agent before notice of the agency.
History: En. Sec. 3116, Civ. C. 1895; re-en. Sec. 5448, Rev. C. 1907; re-en. Sec. 7963, R.C.M. 1921; Cal. Civ. C. Sec. 2336; Field Civ. C. Sec. 1251; re-en. Sec. 7963, R.C.M. 1935; R.C.M. 1947, 2-207; amd. Sec. 810, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 6. Rights and Liabilities of Principal › 28-10-609. Principal's liability when agent given exclusive credit

28-10-609. Principal's liability when agent given exclusive credit.
If exclusive credit is given to an agent by the person dealing with the agent, the agent's principal is exonerated by payment or other satisfaction made by the principal to the agent in good faith before receiving notice of the creditor's election to hold the principal responsible.
History: En. Sec. 3115, Civ. C. 1895; re-en. Sec. 5447, Rev. C. 1907; re-en. Sec. 7962, R.C.M. 1921; Cal. Civ. C. Sec. 2335; Field Civ. C. Sec. 1250; re-en. Sec. 7962, R.C.M. 1935; R.C.M. 1947, 2-206; amd. Sec. 811, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 7. Agent's Responsibility to Third Persons › 28-10-701. Warranty of authority

28-10-701. Warranty of authority.
A person who assumes to act as an agent warrants to all who deal with the person in that capacity that the person has the authority that the person assumes.
History: En. Sec. 3130, Civ. C. 1895; re-en. Sec. 5452, Rev. C. 1907; re-en. Sec. 7967, R.C.M. 1921; Cal. Civ. C. Sec. 2342; Field Civ. C. Sec. 1255; re-en. Sec. 7967, R.C.M. 1935; R.C.M. 1947, 2-211; amd. Sec. 812, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 7. Agent's Responsibility to Third Persons › 28-10-702. When agent responsible to third persons as principal

28-10-702. When agent responsible to third persons as principal.
A person who assumes to act as an agent is responsible to third persons as a principal for acts in the course of the agency in any of the following cases and in no other:
(1) when, with the agent's consent, credit is given to the agent personally in a transaction;
(2) when the agent enters into a written contract in the name of the principal without believing in good faith that the agent has authority to do so; or
(3) when the agent's acts are wrongful in their nature.
History: En. Sec. 3131, Civ. C. 1895; re-en. Sec. 5453, Rev. C. 1907; re-en. Sec. 7968, R.C.M. 1921; Cal. Civ. C. Sec. 2343; Field Civ. C. Sec. 1256; re-en. Sec. 7968, R.C.M. 1935; R.C.M. 1947, 2-212; amd. Sec. 813, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 7. Agent's Responsibility to Third Persons › 28-10-703. Responsibility of agent when third person claims property received for principal

28-10-703. Responsibility of agent when third person claims property received for principal.
If an agent receives anything for the benefit of the agent's principal that another person is entitled to possess, the agent shall, on demand, surrender it to the person, or so much of it as the agent has under the agent's control at the time of demand, on being indemnified for any advance that the agent has made to the principal, in good faith, on account of the advance. The agent is responsible for the thing of benefit if, after demand, the agent delivers it to the principal.
History: En. Sec. 3132, Civ. C. 1895; re-en. Sec. 5454, Rev. C. 1907; re-en. Sec. 7969, R.C.M. 1921; Cal. Civ. C. Sec. 2344; Field Civ. C. Sec. 1257; re-en. Sec. 7969, R.C.M. 1935; R.C.M. 1947, 2-213; amd. Sec. 33, Ch. 117, L. 1979; amd. Sec. 814, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 7. Agent's Responsibility to Third Persons › 28-10-704. Applicability of laws relating to capacity to contract

28-10-704. Applicability of laws relating to capacity to contract.
The provisions of this part are subject to the provisions of chapter 2, part 2; 28-10-104; and Title 41, chapter 1.
History: En. Sec. 3133, Civ. C. 1895; re-en. Sec. 5455, Rev. C. 1907; re-en. Sec. 7970, R.C.M. 1921; Cal. Civ. C. Sec. 2345; Field Civ. C. Sec. 1258; re-en. Sec. 7970, R.C.M. 1935; R.C.M. 1947, 2-214; amd. Sec. 34, Ch. 117, L. 1979.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 8. Termination of Agency › 28-10-801. Circumstances that terminate agency

28-10-801. Circumstances that terminate agency.
An agency is terminated as to every person having notice of the termination by:
(1) the expiration of the agency's term;
(2) the extinction of the agency' subject;
(3) the death of the agent;
(4) the agent's renunciation of the agency; or
(5) the incapacity of the agent to act as an agent.
History: En. Sec. 3150, Civ. C. 1895; re-en. Sec. 5459, Rev. C. 1907; re-en. Sec. 7974, R.C.M. 1921; Cal. Civ. C. Sec. 2355; Field Civ. C. Sec. 1262; re-en. Sec. 7974, R.C.M. 1935; R.C.M. 1947, 2-304; amd. Sec. 815, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 10. Agency › Part 8. Termination of Agency › 28-10-802. Circumstances that terminate agency not coupled with interest

28-10-802. Circumstances that terminate agency not coupled with interest.
Unless the power of the agent is coupled with an interest in the subject of the agency, the agency is terminated as to every person having notice of the termination by:
(1) its revocation by the principal;
(2) the principal's death; or
(3) the principal's incapacity to contract.
History: En. Sec. 3151, Civ. C. 1895; re-en. Sec. 5460, Rev. C. 1907; re-en. Sec. 7975, R.C.M. 1921; Cal. Civ. C. Sec. 2356; Field Civ. C. Sec. 1263; re-en. Sec. 7975, R.C.M. 1935; R.C.M. 1947, 2-305; amd. Sec. 816, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 1. Guaranty -- General Provisions › 28-11-101. Guaranty defined

28-11-101. Guaranty defined.
A guaranty is a promise to answer for the debt, default, or miscarriage of another person.
History: En. Sec. 3600, Civ. C. 1895; re-en. Sec. 5656, Rev. C. 1907; re-en. Sec. 8171, R.C.M. 1921; Cal. Civ. C. Sec. 2787; Field Civ. C. Sec. 1534; re-en. Sec. 8171, R.C.M. 1935; R.C.M. 1947, 30-101.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 1. Guaranty -- General Provisions › 28-11-102. Knowledge or consent of principal not required

28-11-102. Knowledge or consent of principal not required.
A person may become guarantor even without the knowledge or consent of the principal.
History: En. Sec. 3601, Civ. C. 1895; re-en. Sec. 5657, Rev. C. 1907; re-en. Sec. 8172, R.C.M. 1921; Cal. Civ. C. Sec. 2788; Field Civ. C. Sec. 1535; re-en. Sec. 8172, R.C.M. 1935; R.C.M. 1947, 30-102.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 1. Guaranty -- General Provisions › 28-11-103. When separate consideration required

28-11-103. When separate consideration required.
When a guaranty is entered into at the same time with the original obligation or with the acceptance of the original obligation by the person making the guaranty and forms with that original obligation a part of the consideration to the person, no other consideration need exist. In all other cases, there must be a consideration distinct from that of the original obligation.
History: En. Sec. 3610, Civ. C. 1895; re-en. Sec. 5658, Rev. C. 1907; re-en. Sec. 8173, R.C.M. 1921; Cal. Civ. C. Sec. 2792; Field Civ. C. Sec. 1536; re-en. Sec. 8173, R.C.M. 1935; R.C.M. 1947, 30-103; amd. Sec. 817, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 1. Guaranty -- General Provisions › 28-11-104. Guaranty generally to be in writing -- form

28-11-104. Guaranty generally to be in writing -- form.
Except as prescribed by 28-11-105, a guaranty must be in writing and signed by the guarantor, but the writing need not express a consideration.
History: En. Sec. 3611, Civ. C. 1895; re-en. Sec. 5659, Rev. C. 1907; re-en. Sec. 8174, R.C.M. 1921; Cal. Civ. C. Sec. 2793; Field Civ. C. Sec. 1537; re-en. Sec. 8174, R.C.M. 1935; R.C.M. 1947, 30-104.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 1. Guaranty -- General Provisions › 28-11-105. When guaranty considered original obligation and need not be in writing

28-11-105. When guaranty considered original obligation and need not be in writing.
A promise to answer for the obligation of another in any of the following cases is considered an original obligation of the promisor and need not be in writing:
(1) when the promise is made by one who has received property of another upon an undertaking to apply the property pursuant to the promise or by one who has received a discharge from an obligation, in whole or in part, in consideration of the promise;
(2) when the creditor parts with value or enters into an obligation in consideration of the obligation in respect to which the promise is made, in terms or under circumstances that render the party making the promise the principal debtor and the person in whose behalf the promise is made the party's surety;
(3) when the promise, being for an antecedent obligation of another, is made upon a consideration:
(a) that the party receiving the promise cancels the antecedent obligation, accepting the new promise as a substitute for the antecedent obligation;
(b) that the party receiving the promise releases the property of another from a levy; or
(c) beneficial to the promisor, whether moving from either party to the antecedent obligation or from another person;
(4) when a factor undertakes to sell merchandise for a commission and guarantee the sale;
(5) when the holder of an instrument for the payment of money upon which a third person is or may become liable to the holder transfers the instrument in payment of a precedent debt of the holder's own or for a new consideration and in connection with the transfer enters into a promise respecting the instrument.
History: En. Sec. 3612, Civ. C. 1895; re-en. Sec. 5660, Rev. C. 1907; re-en. Sec. 8175, R.C.M. 1921; Cal. Civ. C. Sec. 2794; Field Civ. C. Sec. 1538; re-en. Sec. 8175, R.C.M. 1935; R.C.M. 1947, 30-105; amd. Sec. 818, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 1. Guaranty -- General Provisions › 28-11-106. When notice of acceptance necessary to bind guarantor

28-11-106. When notice of acceptance necessary to bind guarantor.
A mere offer of guaranty is not binding until notice of its acceptance is communicated by the guarantee to the guarantor, but an absolute guaranty is binding upon the guarantor without notice of acceptance.
History: En. Sec. 3613, Civ. C. 1895; re-en. Sec. 5661, Rev. C. 1907; re-en. Sec. 8176, R.C.M. 1921; Cal. Civ. C. Sec. 2795; Field Civ. C. Sec. 1539; re-en. Sec. 8176, R.C.M. 1935; amd. Sec. 6, Ch. 185, L. 1977; R.C.M. 1947, 30-106.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 1. Guaranty -- General Provisions › 28-11-107. When guaranty considered unconditional

28-11-107. When guaranty considered unconditional.
A guaranty is to be deemed unconditional unless its terms import some condition precedent to the liability of the guarantor.
History: En. Sec. 3630, Civ. C. 1895; re-en. Sec. 5666, Rev. C. 1907; re-en. Sec. 8181, R.C.M. 1921; Cal. Civ. C. Sec. 2806; Field Civ. C. Sec. 1544; re-en. Sec. 8181, R.C.M. 1935; R.C.M. 1947, 30-201.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 1. Guaranty -- General Provisions › 28-11-108. Continuing guaranty -- definition -- revocation

28-11-108. Continuing guaranty -- definition -- revocation.
(1) A guaranty relating to a future liability of the principal under successive transactions that either continue the principal's liability or from time to time renew it after it has been satisfied is called a continuing guaranty.
(2) A continuing guaranty may be revoked at any time by the guarantor in respect to future transactions unless there is a continuing consideration as to the transactions that the guarantor does not renounce.
History: En. Secs. 3640, 3641, Civ. C. 1895; re-en. Secs. 5671, 5672, Rev. C. 1907; re-en. Secs. 8186, 8187, R.C.M. 1921; Cal. Civ. C. Secs. 2814, 2815; Field Civ. C. Secs. 1549, 1550; re-en. Secs. 8186, 8187, R.C.M. 1935; R.C.M. 1947, 30-206, 30-207; amd. Sec. 819, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-201. Obligation of guarantor not to exceed that of principal

28-11-201. Obligation of guarantor not to exceed that of principal.
The obligation of a guarantor must be neither larger in amount nor in other respects more burdensome than that of the principal, and if in its terms it exceeds it, it is reducible in proportion to the principal obligation.
History: En. Sec. 3633, Civ. C. 1895; re-en. Sec. 5669, Rev. C. 1907; re-en. Sec. 8184, R.C.M. 1921; Cal. Civ. C. Sec. 2809; Field Civ. C. Sec. 1547; re-en. Sec. 8184, R.C.M. 1935; R.C.M. 1947, 30-204.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-202. Liability under guaranty of incomplete contract

28-11-202. Liability under guaranty of incomplete contract.
In a guaranty of a contract the terms of which are not then settled, it is implied that the guaranty's terms will not expose the guarantor to greater risks than the guarantor would incur under those terms that are most common in similar contracts at the place where the principal contract is to be performed.
History: En. Sec. 3620, Civ. C. 1895; re-en. Sec. 5662, Rev. C. 1907; re-en. Sec. 8177, R.C.M. 1921; Cal. Civ. C. Sec. 2799; Field. Civ. C. Sec. 1540; re-en. Sec. 8177, R.C.M. 1935; R.C.M. 1947, 30-107; amd. Sec. 820, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-203. Liability under guaranty of illegal contract or contract void against principal

28-11-203. Liability under guaranty of illegal contract or contract void against principal.
A guarantor is not liable if the contract of the principal is unlawful, but the guarantor is liable notwithstanding any mere personal disability of the principal, even though the disability would make the contract void against the principal.
History: En. Sec. 3634, Civ. C. 1895; re-en. Sec. 5670, Rev. C. 1907; re-en. Sec. 8185, R.C.M. 1921; Cal. Civ. C. Sec. 2810; Field Civ. C. Sec. 1548; re-en. Sec. 8185, R.C.M. 1935; R.C.M. 1947, 30-205; amd. Sec. 821, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-204. Liability under guaranty that obligation is good or collectible

28-11-204. Liability under guaranty that obligation is good or collectible.
(1) A guaranty to the effect that an obligation is good or is collectible imports that the debtor is solvent and that the demand is collectible by the usual legal proceedings if taken with reasonable diligence.
(2) A guaranty such as is mentioned in subsection (1) is not discharged by an omission to take proceedings upon the principal debt or upon any collateral security for its payment if no part of the debt could have been collected thereby.
(3) In the case mentioned in subsection (1), the removal of the principal from the state, leaving no property therein from which the obligation might be satisfied, is equivalent to the insolvency of the principal in its effect upon the rights and obligations of the guarantor.
History: En. Secs. 3621, 3622, 3623, Civ. C. 1895; re-en. Secs. 5663, 5664, 5665, Rev. C. 1907; re-en. Secs. 8178, 8179, 8180, R.C.M. 1921; Cal. Civ. C. Secs. 2800, 2801, 2802; Field Civ. C. Secs. 1541, 1542, 1543; re-en. Secs. 8178, 8179, 8180, R.C.M. 1935; R.C.M. 1947, 30-108, 30-109, 30-110.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-205. When guarantor of payment or performance becomes liable

28-11-205. When guarantor of payment or performance becomes liable.
A guarantor of payment or performance is liable to the guarantee immediately upon the default of the principal and without demand or notice.
History: En. Sec. 3631, Civ. C. 1895; re-en. Sec. 5667, Rev. C. 1907; re-en. Sec. 8182, R.C.M. 1921; Cal. Civ. C. Sec. 2807; Field Civ. C. Sec. 1545; re-en. Sec. 8182, R.C.M. 1935; R.C.M. 1947, 30-202.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-206. Liability upon guaranty of conditional obligation -- notice of default

28-11-206. Liability upon guaranty of conditional obligation -- notice of default.
If a person guarantees a conditional obligation, the person's liability is commensurate with that of the principal and the person is not entitled to notice of the default of the principal unless the person is unable, by the exercise of reasonable diligence, to acquire information of the default and the creditor has actual notice of the default.
History: En. Sec. 3632, Civ. C. 1895; re-en. Sec. 5668, Rev. C. 1907; re-en. Sec. 8183, R.C.M. 1921; Cal. Civ. C. Sec. 2808; Field Civ. C. Sec 1546; re-en. Sec. 8183, R.C.M. 1935; R.C.M. 1947, 30-203; amd. Sec. 822, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-211. When guarantor exonerated

28-11-211. When guarantor exonerated.
(1) A guarantor is exonerated, except so far as the guarantor may be indemnified by the principal, if by any act of the creditor not authorized by the original guaranty instrument or without the separate consent of the guarantor, the original obligation of the principal is altered in any respect or the remedies or rights of the creditor against the principal in respect to the original obligation are in any way impaired or suspended.
(2) A promise by a creditor that for any cause is void or voidable by the creditor at the creditor's option does not alter the obligation or suspend or impair the remedy within the meaning of subsection (1).
History: En. Secs. 3650, 3651, Civ. C. 1895; re-en. Secs. 5673, 5674, Rev. C. 1907; re-en. Secs. 8188, 8189, R.C.M. 1921; Cal. Civ. C. Secs. 2819, 2820; Field Civ. C. Secs. 1551, 1552; re-en. Secs. 8188, 8189, R.C.M. 1935; R.C.M. 1947, 30-208, 30-209; amd. Sec. 823, Ch. 56, L. 2009; amd. Sec. 1, Ch. 168, L. 2021.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-212. Rescission of alteration -- liability not restored

28-11-212. Rescission of alteration -- liability not restored.
The rescission of an agreement altering the original obligation of a debtor or impairing the remedy of a creditor does not restore the liability of a guarantor who has been exonerated by such agreement.
History: En. Sec. 3652, Civ. C. 1895; re-en. Sec. 5675, Rev. C. 1907; re-en. Sec. 8190, R.C.M. 1921; Cal. Civ. C. Sec. 2821; Field Civ. C. Sec. 1553; re-en. Sec. 8190, R.C.M. 1935; R.C.M. 1947, 30-210.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-213. Guarantor not exonerated by delay of creditor

28-11-213. Guarantor not exonerated by delay of creditor.
Mere delay on the part of a creditor to proceed against the principal or to enforce any other remedy does not exonerate a guarantor.
History: En. Sec. 3654, Civ. C. 1895; re-en. Sec. 5677, Rev. C. 1907; re-en. Sec. 8192, R.C.M. 1921; Cal. Civ. C. Sec. 2823; Field Civ. C. Sec. 1555; re-en. Sec. 8192, R.C.M. 1935; R.C.M. 1947, 30-212.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-214. Guarantor not exonerated by discharge of principal

28-11-214. Guarantor not exonerated by discharge of principal.
A guarantor is not exonerated by the discharge of the guarantor's principal by operation of law without the intervention or omission of the creditor.
History: En. Sec. 3656, Civ. C. 1895; re-en. Sec. 5679, Rev. C. 1907; re-en. Sec. 8194, R.C.M. 1921; Cal. Civ. C. Sec. 2825; Field Civ. C. Sec. 1557; re-en. Sec. 8194, R.C.M. 1935; R.C.M. 1947, 30-214; amd. Sec. 824, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-215. Exoneration of guarantor indemnified by principal

28-11-215. Exoneration of guarantor indemnified by principal.
A guarantor who has been indemnified by the principal is liable to the creditor to the extent of the indemnity notwithstanding that the creditor, without the assent of the guarantor, may have modified the contract or released the principal.
History: En. Sec. 3655, Civ. C. 1895; re-en. Sec. 5678, Rev. C. 1907; re-en. Sec. 8193, R.C.M. 1921; Cal. Civ. C. Sec. 2824; Field Civ. C. Sec. 1556; re-en. Sec. 8193, R.C.M. 1935; R.C.M. 1947, 30-213.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 2. Guaranty -- Liability and Exoneration of Guarantor › 28-11-216. Effect of part performance on guarantor's liability

28-11-216. Effect of part performance on guarantor's liability.
The acceptance by a creditor of anything in partial satisfaction of an obligation reduces the obligation of a guarantor thereof in the same measure as that of the principal but does not otherwise affect it.
History: En. Sec. 3653, Civ. C. 1895; re-en. Sec. 5676, Rev. C. 1907; re-en. Sec. 8191, R.C.M. 1921; Cal. Civ. C. Sec. 2822; Field Civ. C. Sec. 1554; re-en. Sec. 8191, R.C.M. 1935; R.C.M. 1947, 30-211.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-301. Indemnity defined

28-11-301. Indemnity defined.
Indemnity is a contract by which one engages to save another from a legal consequence of the conduct of one of the parties or of some other person.
History: En. Sec. 3580, Civ. C. 1895; re-en. Sec. 5648, Rev. C. 1907; re-en. Sec. 8163, R.C.M. 1921; Cal. Civ. C. Sec. 2772; Field Civ. C. Sec. 1524; re-en. Sec. 8163, R.C.M. 1935; R.C.M. 1947, 30-301.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-302. Indemnity for future unlawful act void

28-11-302. Indemnity for future unlawful act void.
An agreement to indemnify a person against an act thereafter to be done is void if the act be known by such person, at the time of doing it, to be unlawful.
History: En. Sec. 3581, Civ. C. 1895; re-en. Sec. 5649, Rev. C. 1907; re-en. Sec. 8164, R.C.M. 1921; Cal. Civ. C. Sec. 2773; Field Civ. C. Sec. 1525; re-en. Sec. 8164, R.C.M. 1935; R.C.M. 1947, 30-302.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-303. Indemnity for past wrongful act valid

28-11-303. Indemnity for past wrongful act valid.
An agreement to indemnify a person against an act already done is valid, even though the act was known to be wrongful, unless it was a felony.
History: En. Sec. 3582, Civ. C. 1895; re-en. Sec. 5650, Rev. C. 1907; re-en. Sec. 8165, R.C.M. 1921; Cal. Civ. C. Sec. 2774; Field Civ. C. Sec. 1526; re-en. Sec. 8165, R.C.M. 1935; R.C.M. 1947, 30-303.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-304. Indemnity extended to acts of agents

28-11-304. Indemnity extended to acts of agents.
An agreement to indemnify against the acts of a certain person applies not only to the person's acts and their consequences but also to those of the person's agents.
History: En. Sec. 3583, Civ. C. 1895; re-en. Sec. 5651, Rev. C. 1907; re-en. Sec. 8166, R.C.M. 1921; Cal. Civ. C. Sec. 2775; Field Civ. C. Sec. 1527; re-en. Sec. 8166, R.C.M. 1935; R.C.M. 1947, 30-304; amd. Sec. 825, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-305. Indemnification of several persons

28-11-305. Indemnification of several persons.
An agreement to indemnify several persons applies to each unless a contrary intention appears.
History: En. Sec. 3584, Civ. C. 1895; re-en. Sec. 5652, Rev. C. 1907; re-en. Sec. 8167, R.C.M. 1921; Cal. Civ. C. Sec. 2776; Field Civ. C. Sec. 1528; re-en. Sec. 8167, R.C.M. 1935; R.C.M. 1947, 30-305.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-311. Person indemnifying liable jointly and severally

28-11-311. (Temporary) Person indemnifying liable jointly and severally.
Except as provided in 27-1-703, one who indemnifies another against an act to be done by the latter is liable jointly with the person indemnified and separately to every person injured by such act. (Terminates on occurrence of contingency--sec. 11(2), Ch. 429, L. 1997.)
28-11-311. (Effective on occurrence of contingency) Person indemnifying liable jointly and severally.
Except as may be otherwise provided in 27-1-703 and 27-1-705, a person who indemnifies another person against an act to be done by the latter is liable jointly with the person indemnified and separately to every person injured by the act.
History: En. Sec. 3585, Civ. C. 1895; re-en. Sec. 5653, Rev. C. 1907; re-en. Sec. 8168, R.C.M. 1921; Cal. Civ. C. Sec. 2777; Field Civ. C. Sec. 1529; re-en. Sec. 8168, R.C.M. 1935; R.C.M. 1947, 30-306; amd. Sec. 5, Ch. 253, L. 1987; amd. Sec. 8, Ch. 429, L. 1997.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-312. When person indemnifying entitled to reimbursement

28-11-312. When person indemnifying entitled to reimbursement.
If a person at the request of another engages to answer in damages, whether liquidated or unliquidated, for any violation of duty on the part of the latter, the person is entitled to be reimbursed in the same manner as a surety for whatever the person may pay.
History: En. Sec. 3587, Civ. C. 1895; re-en. Sec. 5655, Rev. C. 1907; re-en. Sec. 8170, R.C.M. 1921; Cal. Civ. C. Sec. 2779; Field Civ. C. Sec. 1531; re-en. Sec. 8170, R.C.M. 1935; R.C.M. 1947, 30-308; amd. Sec. 826, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-313. Interpretation of contract of indemnity

28-11-313. Interpretation of contract of indemnity.
In the interpretation of a contract of indemnity, the rules prescribed in 28-11-314 through 28-11-317 are to be applied unless a contrary intention appears.
History: En. Sec. 3586, Civ. C. 1895; re-en. Sec. 5654, Rev. C. 1907; re-en. Sec. 8169, R.C.M. 1921; Cal. Civ. C. Sec. 2778; Field Civ. C. Sec. 1530; re-en. Sec. 8169, R.C.M. 1935; R.C.M. 1947, 30-307(part).
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-314. When and what person indemnified entitled to recover

28-11-314. When and what person indemnified entitled to recover.
(1) Upon an indemnity against liability, expressly or in other equivalent terms, the person indemnified is entitled to recover upon becoming liable.
(2) Upon an indemnity against claims, demands, damages, or costs, expressly or in other equivalent terms, the person indemnified is not entitled to recover without payment thereof.
History: En. Sec. 3586, Civ. C. 1895; re-en. Sec. 5654, Rev. C. 1907; re-en. Sec. 8169, R.C.M. 1921; Cal. Civ. C. Sec. 2778; Field Civ. C. Sec. 1530; re-en. Sec. 8169, R.C.M. 1935; R.C.M. 1947, 30-307(1), (2).
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-315. Costs of defense

28-11-315. Costs of defense.
An indemnity against claims, demands, or liability, expressly or in other equivalent terms, embraces the costs of defense against such claims, demands, or liability incurred in good faith and in the exercise of a reasonable discretion.
History: En. Sec. 3586, Civ. C. 1895; re-en. Sec. 5654, Rev. C. 1907; re-en. Sec. 8169, R.C.M. 1921; Cal. Civ. C. Sec. 2778; Field Civ. C. Sec. 1530; re-en. Sec. 8169, R.C.M. 1935; R.C.M. 1947, 30-307(3).
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-316. Duty of person indemnifying to defend

28-11-316. Duty of person indemnifying to defend.
The person indemnifying is bound, on request of the person indemnified, to defend actions or proceedings brought against the person indemnified in respect to the matters embraced by the indemnity, but the person indemnified has the right to conduct defenses if the person indemnified chooses to do so. If, after request, the person indemnifying neglects to defend the person indemnified, a recovery against the person indemnified suffered by the person indemnified in good faith is conclusive in favor of the person indemnified against the person indemnifying.
History: En. Sec. 3586, Civ. C. 1895; re-en. Sec. 5654, Rev. C. 1907; re-en. Sec. 8169, R.C.M. 1921; Cal. Civ. C. Sec. 2778; Field Civ. C. Sec. 1530; re-en. Sec. 8169, R.C.M. 1935; R.C.M. 1947, 30-307(4), (5); amd. Sec. 827, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 3. Indemnity › 28-11-317. When judgment not conclusive against person indemnifying

28-11-317. When judgment not conclusive against person indemnifying.
(1) If the person indemnifying, whether the person is a principal or a surety in the agreement, does not have reasonable notice of the action or proceeding against the person indemnified or is not allowed to control the person indemnified's defense, judgment against the person indemnified is only presumptive evidence against the person indemnifying.
(2) A stipulation that a judgment against the person indemnified is conclusive upon the person indemnifying is inapplicable if the person indemnifying had a good defense upon the merits that by want of ordinary care the person indemnified failed to establish in the action.
History: En. Sec. 3586, Civ. C. 1895; re-en. Sec. 5654, Rev. C. 1907; re-en. Sec. 8169, R.C.M. 1921; Cal. Civ. C. Sec. 2778; Field Civ. C. Sec. 1530; re-en. Sec. 8169, R.C.M. 1935; R.C.M. 1947, 30-307(6), (7); amd. Sec. 828, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-401. Surety defined

28-11-401. Surety defined.
A surety is one who, at the request of another person and for the purpose of securing to the other person a benefit, becomes responsible for the performance by the other person of some act in favor of a third person or pledges property as security for the performance.
History: En. Sec. 3670, Civ. C. 1895; re-en. Sec. 5680, Rev. C. 1907; re-en. Sec. 8195, R.C.M. 1921; Cal. Civ. C. Sec. 2831; Field Civ. C. Sec. 1558; re-en. Sec. 8195, R.C.M. 1935; R.C.M. 1947, 30-401; amd. Sec. 829, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-402. When apparent principal may show surety

28-11-402. When apparent principal may show surety.
A person who appears to be a principal, whether by the terms of a written instrument or otherwise, may show that the person is in fact a surety except as against persons who have acted on the faith of the person's apparent character of principal.
History: En. Sec. 3671, Civ. C. 1895; re-en. Sec. 5681, Rev. C. 1907; re-en. Sec. 8196, R.C.M. 1921; Cal. Civ. C. Sec. 2832; Field Civ. C. Sec. 1559; re-en. Sec. 8196, R.C.M. 1935; R.C.M. 1947, 30-402; amd. Sec. 830, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-403. Interpretation of contract of suretyship

28-11-403. Interpretation of contract of suretyship.
In interpreting the terms of a contract of suretyship, the same rules are to be observed as in the case of other contracts.
History: En. Sec. 3681, Civ. C. 1895; re-en. Sec. 5683, Rev. C. 1907; re-en. Sec. 8198, R.C.M. 1921; Cal. Civ. C. Sec. 2837; Field Civ. C. Sec. 1561; re-en. Sec. 8198, R.C.M. 1935; R.C.M. 1947, 30-404.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-404. Suretyship unaffected by judgment against surety

28-11-404. Suretyship unaffected by judgment against surety.
Notwithstanding the recovery of judgment by a creditor against a surety, the latter still occupies the relation of surety.
History: En. Sec. 3682, Civ. C. 1895; re-en. Sec. 5684, Rev. C. 1907; re-en. Sec. 8199, R.C.M. 1921; Cal. Civ. C. Sec. 2838; Field Civ. C. Sec. 1562; re-en. Sec. 8199, R.C.M. 1935; R.C.M. 1947, 30-405.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-411. Extent of surety's liability

28-11-411. Extent of surety's liability.
A surety cannot be held beyond the express terms of the surety's contract, and if the contract prescribes a penalty for breach, the surety cannot in any case be liable for more than the penalty.
History: En. Sec. 3680, Civ. C. 1895; re-en. Sec. 5682, Rev. C. 1907; re-en. Sec. 8197, R.C.M. 1921; Cal. Civ. C. Sec. 2836; Field Civ. C. Sec. 1560; re-en. Sec. 8197, R.C.M. 1935; R.C.M. 1947, 30-403; amd. Sec. 831, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-412. Exoneration of surety

28-11-412. Exoneration of surety.
A surety is exonerated:
(1) in like manner with a guarantor;
(2) to the extent to which the surety is prejudiced by any act of the creditor that would naturally prove injurious to the remedies of the surety or inconsistent with the surety's rights or that lessens the surety's security; or
(3) to the extent to which the surety is prejudiced by an omission of the creditor, when required by the surety, to do anything that it is the creditor's duty to do.
History: En. Sec. 3684, Civ. C. 1895; re-en. Sec. 5686, Rev. C. 1907; re-en. Sec. 8201, R.C.M. 1921; Cal. Civ. C. Sec. 2840; Field Civ. Sec. 1564; re-en. Sec. 8201, R.C.M. 1935; amd. Sec. 8, Ch. 185, L. 1977; R.C.M. 1947, 30-407; amd. Sec. 832, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-413. Effect of performance or offer of performance on surety's liability

28-11-413. Effect of performance or offer of performance on surety's liability.
Performance of the principal obligation or an offer of such performance, duly made as provided in this code, exonerates a surety.
History: En. Sec. 3683, Civ. C. 1895; re-en. Sec. 5685, Rev. C. 1907; re-en. Sec. 8200, R.C.M. 1921; Cal. Civ. C. Sec. 2839; Based on Field Civ. C. Sec. 1563; re-en. Sec. 8200, R.C.M. 1935; R.C.M. 1947, 30-406.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-414. Application to surety of rights of guarantor

28-11-414. Application to surety of rights of guarantor.
A surety has all the right of a guarantor, whether the surety becomes personally responsible or not.
History: En. Sec. 3690, Civ. C. 1895; re-en. Sec. 5687, Rev. C. 1907; re-en. Sec. 8202, R.C.M. 1921; Cal. Civ. C. Sec. 2844; Field Civ. C. Sec. 1565; re-en. Sec. 8202, R.C.M. 1935; R.C.M. 1947, 30-501; amd. Sec. 833, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-415. Power of surety to compel principal to perform

28-11-415. Power of surety to compel principal to perform.
A surety may compel the surety's principal to perform the obligations when due.
History: En. Sec. 3692, Civ. C. 1895; re-en. Sec. 5689, Rev. C. 1907; re-en. Sec. 8204, R.C.M. 1921; Cal. Civ. C. Sec. 2846; Field Civ. C. Sec. 1567; re-en. Sec. 8204, R.C.M. 1935; R.C.M. 1947, 30-503; amd. Sec. 834, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-416. When surety may require creditor to pursue remedy

28-11-416. When surety may require creditor to pursue remedy.
A surety may require the surety's creditor to proceed against the principal or to pursue any other remedy in the surety's power that the surety cannot pursue and that would lighten the surety's burden, and if the creditor neglects to do so, the surety is exonerated to the extent to which the surety is prejudiced.
History: En. Sec. 3691, Civ. C. 1895; re-en. Sec. 5688, Rev. C. 1907; re-en. Sec. 8203, R.C.M. 1921; Cal. Civ. C. Sec. 2845; Field Civ. C. Sec. 1566; re-en. Sec. 8203, R.C.M. 1935; R.C.M. 1947, 30-502; amd. Sec. 835, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-417. Surety's right to reimbursement and contribution

28-11-417. Surety's right to reimbursement and contribution.
(1) If a surety satisfies the principal obligation or any part of the principal obligation, whether with or without legal proceedings, the principal is bound to reimburse what the surety has disbursed, including necessary costs and expenses, but the surety does not have a claim for reimbursement against other persons, even though they may have been benefited by the surety's act, except as prescribed by subsection (2).
(2) A surety, upon satisfying the obligation of the principal, is entitled to enforce every remedy that the creditor then has against the principal to the extent of reimbursing what the surety has expended and also to require all cosureties to contribute to the reimbursement without regard to the order of time in which they became cosureties.
History: En. Secs. 3693, 3694, Civ. C. 1895; re-en. Secs. 5690, 5691, Rev. C. 1907; re-en. Secs. 8205, 8206, R.C.M. 1921; Cal. Civ. C. Secs. 2847, 2848; Field Civ. C. Secs. 1568, 1569; re-en. Secs. 8205, 8206, R.C.M. 1935; R.C.M. 1947, 30-504, 30-505; amd. Sec. 836, Ch. 56, L. 2009.
2023 Montana Code Annotated › Title 28. Contracts and Other Obligations › Chapter 11. Guaranty, Indemnity, and Suretyship › Part 4. Suretyship › 28-11-418. Surety entitled to benefit of security held by creditor or cosurety

28-11-418. Surety entitled to benefit of security held by creditor or cosurety.
A surety is entitled to the benefit of every security for the performance of the principal obligation held by the creditor or by a cosurety at the time of entering into the contract of suretyship or acquired by the creditor or cosurety afterwards, whether the surety was aware of the security or not.
History: En. Sec. 3695, Civ. C. 1895; re-en. Sec. 5692, Rev. C. 1907; re-en. Sec. 8207, R.C.M. 1921; Cal. Civ. C. Sec. 2849; Field Civ. C. Sec. 1570; re-en. Sec. 8207, R.C.M. 1935; R.C.M. 1947, 30-506; amd. Sec. 837, Ch. 56, L. 2009.