Can a surety be cut out of a creditor’s debt?

In Wulff v. Jay, supra, security held by the creditor was lost absolutely through the laches of the creditor, the trustee in bankruptcy having seized and sold the property which had been given by the bankrupts as security, and thus cut out the surety entirely. And it was held in this case that the surety was released only to the extent of the injury he suffered by the loss of the security, namely, the value of the property lost, £300, and judgment was given to plaintiff against the surety for the balance of the debt of 10s., the whole debt being £307.10.3.

Polak v. Everett, supra, was not a question of laches. It was an active interference with the rights of the surety by the creditor, the creditor having released to the debtor some book debts given as security. Although these book debts were not to the amount of the debt, it was held the release of the same discharged the surety, not only to the amount of the book debts, but for the whole debt. But the question of laches of the creditor is discussed, and it is there again laid down that where the surety is entitled to relief on account of laches, he is not totally discharged, but only pro tanto.