Skip to content

Explanation of Article 598

Explanation of Article 598

The article outlined two obligations on the creditor towards the guarantor if the latter fulfills the debt, enabling the guarantor to have recourse against the debtor. These two obligations are:

The first obligation: The creditor must deliver to the guarantor the necessary documents that enable him to exercise his right of recourse against the debtor.

The second obligation: If the debt is secured by a real guarantee provided by the debtor, the creditor must enable the guarantor to access this guarantee. This is because the guarantor, by virtue of the subrogation claim as will be explained, takes the place of the creditor in this guarantee. Therefore, the creditor is required, if this guarantee is on a movable property such as a possessory pledge or something held as security for the debt, to relinquish it to the guarantor. If the guarantee is on real estate, the creditor must undertake the necessary procedures to transfer his rights to the guarantor, with the guarantor bearing the costs of this transfer. If the guarantor fails to pay, he may recover these costs from the debtor.

Article 598

  1. If a surety pays a debt, the creditor shall deliver to him all the documents necessary to exercise his right of recourse against the debtor.

  2. If the surety pays the debt and the debt is secured by a collateral, the creditor shall surrender to the surety the collateral if it is a movable property; if, however, the collateral is a real property, the creditor shall take the measures necessary to transfer to the surety the rights to the collateral, and the cost of said transfer shall be incurred by the surety.