Montana Code 28-11-417. Surety’s right to reimbursement and contribution
28-11-417. Surety’s right to reimbursement and contribution. (1) If a surety satisfies the principal obligation or any part of the principal obligation, whether with or without legal proceedings, the principal is bound to reimburse what the surety has disbursed, including necessary costs and expenses, but the surety does not have a claim for reimbursement against other persons, even though they may have been benefited by the surety’s act, except as prescribed by subsection (2).
Terms Used In Montana Code 28-11-417
- Obligation: An order placed, contract awarded, service received, or similar transaction during a given period that will require payments during the same or a future period.
(2)A surety, upon satisfying the obligation of the principal, is entitled to enforce every remedy that the creditor then has against the principal to the extent of reimbursing what the surety has expended and also to require all cosureties to contribute to the reimbursement without regard to the order of time in which they became cosureties.