North Dakota § 22-01-08 Guaranty of solvency - Failure to take proceedings to collect - Removal of principal from state

North Dakota Statutes

§ 22-01-08 — Guaranty of solvency - Failure to take proceedings to collect - Removal of principal from state

North Dakota·Title 22 Guaranty, Indemnity, and Suretyship·Ch. 22-01 Guaranty

principal from state.
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 the same are taken
with reasonable diligence. Such a guaranty is not discharged by any 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. 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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principal from state.
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 the same are taken
with reasonable diligence. Such a guaranty is not discharged by any 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. 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.

North Dakota § 22-01-08 (Guaranty of solvency - Failure to take proceedings to collect - Removal of principal from state) — published by Counsel Stack Legal Research, free access to 12M+ legal documents.