Subsidiary Liability

Before the presentation of claims against a person who, in accordance with a statute, other legal acts, or the terms of an obligation bears liability supplementary to the liability of another person who is the principal debtor (subsidiary liability), the creditor must present a claim against the principal debtor.

 

If the principal debtor has refused to satisfy a claim of the creditor or the creditor has not received from it in a reasonable time period a response to a claim presented, this claim may be presented to the person bearing subsidiary liability.

 

The creditor does not have the right to demand the satisfaction of its claim against the principal debtor from the person bearing subsidiary liability if this claim can be satisfied by way of setoff of a counterclaim against the principal debtor.

 

The person bearing subsidiary liability must, before satisfying a claim presented to it by a creditor, warn the principal debtor of this and if a suit is made against such a person, involve the principal debtor in participation in the case. In the contrary case the principal debtor has the right to raise against the subrogation claim of the person who is liable subsidiarily, the defenses that he had against the claims of the creditor.

 

Source: Iravaban.net

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