Code of Alabama

Ala. Code § 8-3-5 (2026)

Rights of Surety Against Principal Upon Payment of Debt.

✓ official Alabama Legislature (ALISON) text, current July 2026

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Payment by a surety or endorser of a debt past due entitles him to proceed immediately against his principal for the sum paid, with interest thereon, and all legal costs to which he may have been subjected by the default of the principal.

(Code 1907, §5388; Code 1923, §9547; Code 1940, T. 9, §81.)

Notes of Decisions

Cited in 4 cases, 2000–2018 · leading case: Frontier Ins. v. Int'l, Inc., 124 F. Supp. 2d 1211 (N.D. Ala. 2000).

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Frontier Ins. v. Int'l, Inc., 124 F. Supp. 2d 1211 (N.D. Ala. 2000). · cites it 2× “Ala.Code § 8-3-5 (1975). Thus, based on both contractual and statutory rights, where a surety has sufficiently demonstrated that it has made payments on bonds issued on behalf of its principal, the surety may recover those payments, interest, and expenses, including attorney’s…”

Hanover Ins. v. Hudak & Dawson Constr., 946 F. Supp. 2d 1208 (N.D. Ala. 2013). “§ 8-3-5 (1975). Thus, based contract principles and applicable law, if a surety sufficiently demonstrates that it has made payments on bonds issued on behalf of its principal, the surety may recover those payments, interest, expenses, and attorney’s fees.”

Developers Sur. & Indem. Co. v. Renew Maint. & Constr., Inc. (S.D. Ala. 2018). · cites it 10× “In this case, DSIC alleges four (4) claims against the Defendants as follows: 1) breach of indemnity contract against the Indemnitors (Count I); 2) breach of statutory indemnity against the Principal RMC (Count II) ( Ala. Code § 8-3-5 );3 3) common law indemnification against…”

Diamantis v. Perfect Home LLC (In Re Diamantis), 380 B.R. 838 (Bankr. N.D. Ala. 2007). · cites it 2× “Diamantis further claims that the debt he is owed arises not pursuant to the Perfect Home plan, but, instead pursuant to the provisions of Ala.Code § 8-3-5 which states: Payment by a surety or endorser of a debt past due entitles him to proceed immediately against his principal…”

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