Montana § 28-11-204 Liability Under Guaranty That Obligation Is Good Or Collectible

Montana Statutes

§ 28-11-204 — Liability Under Guaranty That Obligation Is Good Or Collectible

Montana·Title 28 CONTRACTS AND OTHER OBLIGATIONS·Ch. 11 GUARANTY, INDEMNITY, AND SURETYSHIP·Part 2 Guaranty -- Liability and Exoneration of Guarantor

28-11-204 . Liability under guaranty that obligation is good or collectible.

(1)A guaranty to the effect that an obligation is good or is collectible imports that the debtor is solvent and that the demand is collectible by the usual legal proceedings if taken with reasonable diligence.

(2)A guaranty such as is mentioned in subsection (1) is not discharged by an omission to take proceedings upon the principal debt or upon any collateral security for its payment if no part of the debt could have been collected thereby.

(3)In the case mentioned in subsection (1), the removal of the principal from the state, leaving no property therein from which the obligation might be satisfied, is equivalent to the insolvency of the principal in its effect upon the rights and obligations of the guarantor

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28-11-204 . Liability under guaranty that obligation is good or collectible. (1) A guaranty to the effect that an obligation is good or is collectible imports that the debtor is solvent and that the demand is collectible by the usual legal proceedings if taken with reasonable diligence.
(2) A guaranty such as is mentioned in subsection (1) is not discharged by an omission to take proceedings upon the principal debt or upon any collateral security for its payment if no part of the debt could have been collected thereby.
(3) In the case mentioned in subsection (1), the removal of the principal from the state, leaving no property therein from which the obligation might be satisfied, is equivalent to the insolvency of the principal in its effect upon the rights and obligations of the guarantor.

Montana § 28-11-204 (Liability Under Guaranty That Obligation Is Good Or Collectible) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.

Legislative History

En. Secs. 3621, 3622, 3623, Civ. C. 1895; re-en. Secs. 5663, 5664, 5665, Rev. C. 1907; re-en. Secs. 8178, 8179, 8180, R.C.M. 1921; Cal. Civ. C. Secs. 2800, 2801, 2802; Field Civ. C. Secs. 1541, 1542, 1543; re-en. Secs. 8178, 8179, 8180, R.C.M. 1935; R.C.M. 1947, 30-108, 30-109, 30-110.