Surety's right to benefit of creditor's securities

Surety's right to benefit of creditor's securities.— A surety is entitled to the benefit of every security which the creditor has against the principal debtor at the time when the contract of surety-ship is entered into, whether the surety knows of the existence of such security or not ;and, if the creditor loses or, without the consent of the surety, parts with such security, the surety is is charged to the extent of the value of the security.

Illustrations.

1. (a) C advances to B, his tenant,2,000 rupees on the guarantee of A.C has also a further security for the 2,000 rupees by a mortgage of B's furniture. C cancels the mortgage. B becomes insolvent, and C sues A on his guarantee. A is discharged from liability to the amount of the value of the furniture.
2. (b) C, a creditor, whose advance to B is secured by a decree, receives also a guarantee for that advance from A.C afterwards takes B's goods in execution under he decree and then without the knowledge of A withdraws the execution. A is discharged.
3. (c) A, as surety for B, makes a bond jointly with B to C, to secure a loan from C to B. Afterwards C obtains from B a further security for the same debt, Subsequently, C gives up the further security.