ABSTRACT
It is well established that a surety,46 or anyone in an analogous position,47 who is called on to pay the principal debt can recoup his payment from the debtor once he has paid the creditor.48 A similar result follows where the surety compounds for the debt (though he can only recover up to the amount actually paid.49 He can also claim to be subrogated to any security for the debt held by the creditor,50 whether or not he knew about it,51 and even though he himself took a lesser security from the principal.52 Where he has undertaken joint liability with the debtor as against the creditor, s 5 of the Mercantile Law Amendment Act 185653 preserves his right to take over the securities, even though at common law they would be regarded as discharged by his payment.
