(a) After any note, bill, bond, or other obligation becomes due and payable, any surety, indorser, or guarantor thereof may give written notice to the holder or owner of the obligation requiring him to use all reasonable diligence to recover against the principal and to proceed to realize upon any securities which he holds for the obligation.
(b) The surety, indorser or guarantor who gives notice to the holder or owner of the obligation as provided by subsection (a) shall forthwith give written notice to all co-sureties, co-indorsers and co-guarantors of the fact that such notice is being given to the holder or owner of the obligation, and such co-sureties, co-indorsers and co-guarantors shall have ten days after receipt of the notice in which themselves to give written notice to the holder or owner of the obligation and to their co-sureties, co-indorsers, and co-guarantors, that they join in or adopt the notice given pursuant to subsection (a). Failure of such surety, indorser or guarantor to give the required notice to co-sureties, co-indorsers or co-guarantors whose names and residences are known to him or can be obtained by due diligence bars such surety indorser or guarantor from any of the benefits of G.S. 26-9.
(c) The holder or owner of the obligation shall on demand disclose to any surety, indorser, or guarantor of the obligation the names and addresses of all other sureties, indorsers and guarantors which appear on the obligation or of which he has knowledge.
(d) Nothing herein contained shall apply to official bonds, or bonds given by any person acting in a fiduciary capacity. (1868-9, c. 232, s. 1; Code, s. 2097; Rev., s. 2846; C.S., s. 3967; 1951, c. 763, s. 1.)
Notes of Decisions
Fed. Land Bank of Columbia v. Lieben, 366 S.E.2d 592 (N.C. Ct. App. 1988).
· cites it 85× “” Lieben replied to plaintiffs notice on 25 January 1982, by informing it that he, as guarantor, was exercising his right, pursuant to N.C.G.S. § 26-7, to demand that plaintiff proceed against all securities and collateral held on the note and to recover against the principal…”
Resolution Trust Corp. v. Sw. Dev. Co., 807 F. Supp. 375 (E.D.N.C. 1992).
· cites it 34× “Defendants’ Assertion of N.C.Gen. Stat. §§ 26-7, 26-8 and 26-9 Defendants next contend that they properly relied upon the defense provided in N.”
Gillespie v. DeWitt, 280 S.E.2d 736 (N.C. Ct. App. 1981).
· cites it 3× “Defendant asserts that under G.S. 26-7 a guarantor may “demand that the holder of a note use reasonable diligence first to recover against previous obligors and to proceed to realize upon securities he holds for the obligation.”
Borg-Warner Acceptance Corp. v. Johnston, 389 S.E.2d 429 (N.C. Ct. App. 1990).
· cites it 4× “Defendants contend that their answer provides notice to the plaintiff pursuant to G.S. § 26-7 "to use all reasonable diligence to recover against the principal and to proceed to realize upon any securities which he holds for the obligation.”
Regions Bank v. Baxley Com. Props., LLC, 697 S.E.2d 417 (N.C. Ct. App. 2010).
· cites it 3× “Pursuant to NCGS §26-7, Brandon Baxley and Baxley Development, Inc, guarantors of the notes attached to the Plaintiff’s complaint as Exhibits A and B, hereby give notice to Regions Bank to use all reasonable diligence to realize upon the securities which it holds for the…”
Tennessee-Carolina Transp., Inc. v. Strick Corp., 231 S.E.2d 597 (N.C. 1977).
· cites it 2× “" § 26-7. "Rule 30(a) [formerly 26(a)] provides a broad right of discovery from any person by means of oral examination after the action has been commenced.”
Adams v. Lovette, 411 S.E.2d 620 (N.C. Ct. App. 1992).
· cites it 2× “6, compel disclosure if in his opinion disclosure is necessary to a proper administration of justice.”
— N.C. Gen. Stat. § 26-7(a) — 2 cases
Fed. Land Bank of Columbia v. Lieben, 366 S.E.2d 592 (N.C. Ct. App. 1988).
“” Lieben replied to plaintiffs notice on 25 January 1982, by informing it that he, as guarantor, was exercising his right, pursuant to N.C.G.S. § 26-7, to demand that plaintiff proceed against all securities and collateral held on the note and to recover against the principal…”
Gillespie v. DeWitt, 280 S.E.2d 736 (N.C. Ct. App. 1981).
“Defendant asserts that under G.S. 26-7 a guarantor may “demand that the holder of a note use reasonable diligence first to recover against previous obligors and to proceed to realize upon securities he holds for the obligation.”
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