Miscellaneous and supplementary
C260 Liabilities and rights of co-obligants. C1
1
Where a creditor has an obligant (in this section referred to as the “co-obligant”) bound to him along with the debtor for the whole or part of the debt, the co-obligant shall not be freed or discharged from his liability for the debt by reason of the discharge of the debtor or by virtue of the creditor’s voting or drawing a dividend or assenting to, or not opposing—
a
the discharge of the debtor; or
b
any composition.
2
Where—
a
a creditor has had a claim accepted in whole or in part; and
b
a co-obligant holds a security over any part of the debtor’s estate,
the co-obligant shall account to the F1. . . trustee so as to put the estate in the same position as if the co-obligant had paid the debt to the creditor and thereafter had had his claim accepted in whole or in part in the sequestration after deduction of the value of the security.
3
Without prejudice to any right under any rule of law of a co-obligant who has paid the debt, the co-obligant may require and obtain at his own expense from the creditor an assignation of the debt on payment of the amount thereof, and thereafter may in respect of that debt submit a claim, and vote and draw a dividend, if otherwise legally entitled to do so.
4
In this section a “co-obligant” includes a cautioner.