California Codes, Civil Code - CIV, Division 3 — Obligations, Part 4 — Obligations Arising from Particular Transactions, Title 13 — Suretyship, Article 7 — Position of Sureties, Section 2850
Whenever property of a surety is hypothecated with property of the principal, the surety is entitled to have the property of the principal first applied to the discharge of the obligation.
Notes
Requires property of the principal to be applied first toward discharge of the obligation when property of both the principal and the surety has been hypothecated. The rule gives the surety that priority in application whenever the surety’s property is pledged together with the principal’s property for the obligation.
Use as reference
Lexinter.net | California Code, Civil Code - CIV § 2850 | https://laws.lexinter.net/codes/california/civil-code/division-3/part-4/title-13/article-7/section-2850