Montana Code Annotated

Mont. Code Ann. § 28-11-412 (2026)

Exoneration Of Surety

✓ current as of May 2026
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TITLE 28. CONTRACTS AND OTHER OBLIGATIONS

CHAPTER 11. GUARANTY, INDEMNITY, AND SURETYSHIP

Part 4. Suretyship

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.

Notes of Decisions
Cited in 2 cases, 2000–2006 · leading case: Blackfeet Tribe of the Blackfeet Indian Reservation v. Blaze Constr., Inc., 108 F. Supp. 2d 1122 (D. Mont. 2000).
Blackfeet Tribe of the Blackfeet Indian Reservation v. Blaze Constr., Inc., 108 F. Supp. 2d 1122 (D. Mont. 2000). · cites it 6× “Under Montana law, a surety is exonerated from its obligations under a bond, inter alia, to the extent to which he is prejudiced by any act of the creditor which would naturally prove injurious to the remedies of the surety or inconsistent with his rights or which lessens his…”
Denton v. First Interstate Bank of Com., 2006 MT 193 (Mont. 2006). “He relies on § 28-11-412(2) and (3), MCA, which provide: A surety is exonerated: (2) to the extent to which he is prejudiced by any act of the creditor which would naturally prove injurious to the remedies of the surety or inconsistent with his rights or which lessens his…”
— Mont. Code Ann. § 28-11-412(2) — 1 case
Denton v. First Interstate Bank of Com., 2006 MT 193 (Mont. 2006). “He relies on § 28-11-412(2) and (3), MCA, which provide: A surety is exonerated: (2) to the extent to which he is prejudiced by any act of the creditor which would naturally prove injurious to the remedies of the surety or inconsistent with his rights or which lessens his…”
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