Explanation of Article 599
The article clarified the second type of claims that a guarantor, whether jointly liable or not, can use to claim his right from the debtor, which is the claim of subrogation. The guarantor who has paid the debt can take the place of the creditor in all the rights he has before the debtor. If he has only paid part of the debt, the guarantor cannot revert to the debtor with a claim of subrogation for what he has paid until the creditor has fully collected his right from the debtor.
Two conditions must be met for the guarantor to revert with a claim of subrogation:
The first condition: The guarantor must pay the debt on behalf of the debtor by any means of payment. This could be by paying the debt, or by paying its equivalent, or through set-off or consolidation of obligations. However, if the creditor releases the guarantor, or the guarantor's debt becomes time-barred without payment, the guarantor is not considered to have paid or performed an act equivalent to payment; thus, the guarantor does not take the place of the creditor.
The second condition: The guarantor's payment of the debt must occur after its due date. If the guarantor hastens to pay before the debt's due date, he cannot revert to the debtor with a claim of subrogation until the due date, unless the debtor has authorized the early payment by the guarantor.
If both conditions are met, the guarantor takes the place of the creditor in the rights he has before the debtor, with all the characteristics, penalties, non-performance, enforceability, and revocability or rescission, among other features. The guarantor exercises those rights, including guarantees and defenses against them, and these rights also include expenses incurred by the creditor in confronting the debtor; the guarantor takes the place of the creditor in these if the creditor has paid them.
The guarantor's recourse against the debtor in all these matters is to the extent that the guarantor has paid; the guarantor cannot revert to the debtor for more than what the creditor has paid. What the article contains is merely an application of the subrogation claim explained in articles (626-623) of the general rules.
The article stated that the guarantor does not revert, or in part of what he has paid, he cannot revert to the debtor with a claim of subrogation until the creditor has fully collected his right from the debtor; the guarantor cannot compete with him for his right as in a personal claim, in accordance with the presumed will of the contracting parties; the creditor would not have agreed to collect part of his right from the guarantor except on the basis that he collects his remaining right from the debtor. Nevertheless, the creditor and the guarantor can agree otherwise, as stated in article (623), because the interest is for the creditor, and he can waive it.
Related To
Article 599
If the surety pays a debt, he shall have the right to subrogate the creditor in all of his rights against the debtor. If, however, he pays only part of the debt, he shall not have the right of recourse against the debtor for such part until the creditor fully recovers his debt from the debtor.