Does a delay of 5 years in the maturity of a loan, and the bankruptcy of the principal debtor, affect the release of the surety?
Saskatchewan, Canada
The following excerpt is from Yant v. Litman, 1947 CanLII 128 (SK QB):
In Mallough v. Dick, supra, it was held that a delay of five years in, giving the surety notice of the principal debtor’s default, and the bankruptcy of the latter in the interval between the maturity of a note and the notice, did not release the surety of his obligation.
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