State Codes and Statutes

State Codes and Statutes

Statutes > North-carolina > Chapter_26 > GS_26-7

§26‑7.  Surety, indorser, or guarantor may notify creditor to take action.

(a)        After any note,bill, bond, or other obligation becomes due and payable, any surety, indorser,or guarantor thereof may give written notice to the holder or owner of theobligation requiring him to use all reasonable diligence to recover against theprincipal and to proceed to realize upon any securities which he holds for theobligation.

(b)        The surety,indorser or guarantor who gives notice to the holder or owner of the obligationas provided by subsection (a) shall forthwith give written notice to all co‑sureties,co‑indorsers and co‑guarantors of the fact that such notice isbeing given to the holder or owner of the obligation, and such co‑sureties,co‑indorsers and co‑guarantors shall have ten days after receipt ofthe notice in which themselves to give written notice to the holder or owner ofthe obligation and to their co‑sureties, co‑indorsers, and co‑guarantors,that they join in or adopt the notice given pursuant to subsection (a). Failureof such surety, indorser or guarantor to give the required notice to co‑sureties,co‑indorsers or co‑guarantors whose names and residences are knownto him or can be obtained by due diligence bars such surety indorser orguarantor from any of the benefits of G.S. 26‑9.

(c)        The holder or ownerof the obligation shall on demand disclose to any surety, indorser, orguarantor of the obligation the names and addresses of all other sureties,indorsers and guarantors which appear on the obligation or of which he hasknowledge.

(d)        Nothing hereincontained shall apply to official bonds, or bonds given by any person acting ina fiduciary capacity. (1868‑9, c. 232, s. 1; Code, s. 2097; Rev., s.2846; C.S., s. 3967; 1951, c. 763, s. 1.)