Subrogation

1. The assumption by a third party (such as a guarantor)of another party's legal right to collect a debt.
2. For example, when a guarantor pays a creditor who is owed money by a debtor, the guarantor is subrogated to the rights of the creditor. The guarantor steps into the shoes of the creditor that it paid and can collect the guaranteed debt directly from the debtor.

Copyright (c) 2002-2019 William H. Widen. All rights reserved.  ^ Page Top ^