CHAPTER 1. REMEDIES OF SURETIES AGAINST THEIR PRINCIPALS

IC 34-22
    ARTICLE 22. CAUSES OF ACTION: SURETY'SREMEDIES AGAINST PRINCIPAL

IC 34-22-1
    Chapter 1. Remedies of Sureties Against Their Principals

IC 34-22-1-1
Applicability of chapter; surety may require creditor or obligee tocommence action on contract
    Sec. 1. (a) This chapter applies to a person who is bound as suretyupon a contract in writing for the:
        (1) payment of money; or
        (2) performance of any act.
    (b) When the right of action has accrued, the surety may require,by notice in writing, the creditor or obligee to immediately institutean action upon the contract.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-2
Discharge of surety
    Sec. 2. If the creditor or obligee does not:
        (1) proceed within a reasonable time to bring an action upon thecontract; and
        (2) prosecute the action to judgment and execution;
the surety is discharged from all liability on the contract.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-3
Trial on issue of suretyship; two or more defendants
    Sec. 3. (a) This section applies when:
        (1) an action is brought against two (2) or more defendantsupon a contract; and
        (2) at least one (1) or more of the defendants is a surety for theothers.
    (b) The surety may, upon a written complaint to the court, causethe question of suretyship to be tried and determined, upon the issuemade by the parties at:
        (1) the trial of the cause; or
        (2) any time before or after the trial.
    (c) Proceedings described in subsection (b) do not affect theproceedings of the plaintiff.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-4
Order of levy upon property of principal and surety
    Sec. 4. (a) If the finding upon the issue described in section 3(b)of this chapter is in favor of the surety, the court shall make an orderdirecting the sheriff to:
        (1) levy the execution, first upon the property of the principal;

and
        (2) exhaust the property of the principal;
before making a levy upon the property of the surety.
    (b) The clerk shall endorse a memorandum of the order on theexecution.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-5
Judgment remaining in force for use of surety or other personmaking payment
    Sec. 5. (a) This section applies to a:
        (1) defendant-surety in a:
            (A) judgment;
            (B) special bail; or
            (C) replevin bail;
        (2) surety in a delivery bond or replevin bond; or
        (3) person who is a surety in any undertaking.
    (b) This section does not apply to a sheriff, officer, or suretyproviding bond in an official capacity who:
        (1) fails to pay over money collected; or
        (2) wastes property upon which the sheriff, officer, or suretyhas levied.
    (c) When a person described in subsection (a):
        (1) is compelled to pay a judgment, or part of a judgment;
        (2) makes any payment which is applied to a judgment byreason of the person's suretyship; or
        (3) is compelled, by reason of a default of a sheriff, officer orsurety providing bond in an official capacity, to pay a judgment,or part of a judgment;
the judgment is not discharged by the payment.
    (d) However, the judgment remains in force for the use of the bail,surety, officer, or other person making the payment, and after theplaintiff is paid, so much of the judgment as remains unsatisfied maybe prosecuted to execution for use by the person making thepayment.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-6
Remedies against codefendants and cosureties
    Sec. 6. A person who:
        (1) is one (1) of several:
            (A) judgment defendants; or
            (B) replevin sureties; and
        (2) paid and satisfied the plaintiff;
has the remedy provided in section 5 of this chapter against thecodefendants or cosureties to collect from them the ratableproportion each is equitably bound to pay.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-7 When confessed judgment or default judgment by surety notpermitted
    Sec. 7. No surety or representative of a surety shall confessjudgment or suffer judgment, by default, in any case, when the suretyor representative is notified that there is a valid defense, if theprincipal will:
        (1) enter as a defendant to the action; and
        (2) tender to the surety or the representative good security toindemnify him, to be approved by the court.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-8
No relief from valuation or appraisement laws
    Sec. 8. Whenever a surety seeks a remedy against the principal fordischarging a debt, or claim upon contract, in whole or in part,without any relief from valuation or appraisement laws, the remedyof the surety is also enforced without any relief from valuation orappraisement laws.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-9
Applicability of provisions to heirs, executors, administrators, andpersons under legal disabilities
    Sec. 9. Sections 1 through 8 of this chapter extend to:
        (1) heirs;
        (2) executors; and
        (3) administrators;
of deceased persons. However, the provisions concerning suretiesgiving notice to the creditor do not operate against persons underlegal disabilities.
As added by P.L.1-1998, SEC.17.

IC 34-22-1-10
Surety's recovery of interest on debt paid
    Sec. 10. When a surety on a bill, note, bond, or other instrumentin writing, is compelled to pay the debt or obligation of the principaldebtor, the surety shall recover the rate of interest on the amount paidby the surety for the principal, as was originally provided for in thebill, note, bond, or other instrument in writing, held against theprincipal debtor. The judgment given to the surety bears the samerate of interest, not exceeding ten percent (10%) per year.
As added by P.L.1-1998, SEC.17.