O.C.G.A. § 10-7-40 (2019)

Annotations

JUDICIAL DECISIONS Independent remedies provided surety. - Former Civil Code 1910, §§ 3551, 3553, 3559, and 3560 were remedies to which the surety can resort for the surety’s protection, independently of any voluntary action by the creditor. McMillan v. Heard Nat’l Bank, 19 Ga. App. 148, 91 S.E. 235, 1917 Ga. App. LEXIS 36 (1917). Basis of liability. - Liability between principals is not based on underlying notes but on inducement to action. Moore v. Lindsey, 662 F.2d 354, 1981 U.S. App. LEXIS 15629 (5th Cir. 1981). Action in equity after debt falls due. - Paying party may proceed in equity against other principal at any time after debt falls due even if the other principal has not yet been served. Moore v. Lindsey, 662 F.2d 354, 1981 U.S. App. LEXIS 15629 (5th Cir. 1981). Call for contribution. - One who discharges a note can call on one’s joint debtor for contribution. Moore v. Lindsey,

662 F.2d 354, 1981 U.S. App. LEXIS 15629 (5th Cir. 1981). Basis for contribution. - Right to call on a joint debtor for contribution arises upon implied contract of joint debtor to bear the debtor’s share of debt. Moore v. Lindsey, 662 F.2d 354, 1981 U.S. App. LEXIS 15629 (5th Cir. 1981). Contribution in proportion to benefits received. - Usually joint debtors are equally liable, but, upon highest equitable principles, if there is an inequality of benefits the debtors contribute not equally but in proportion to respective benefits accruing to each joint debtor from proceeds. Moore v. Lindsey, 662 F.2d 354, 1981 U.S. App. LEXIS 15629 (5th Cir. 1981). Recovery on implied promise of accommodated party. - Accommodation party can recover on implied promise of accommodated party to indemnify the accomodating party. Moore v. Lindsey, 662 F.2d 354, 1981 U.S. App. LEXIS 15629 (5th Cir. 1981).

RESEARCH REFERENCES Am. Jur. 2d. 74 Am. Jur. 2d, Suretyship, §§ 58, 143. C.J.S. 72 C.J.S., Principal and Surety, §§ 184 et seq., 200.