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Under Section 141, a surety is entitled to the benefit of every security the creditor holds against the principal debtor; if the creditor parts with such security without the surety's consent, the surety is:
AUnaffected
BLiable for the whole debt regardless
CDischarged to the extent of the value of that security
DDischarged entirely
Answer & Solution
Correct answer: C. Discharged to the extent of the value of that security
Section 141 entitles the surety to the benefit of the creditor's securities; loss of or parting with a security without consent discharges the surety to the extent of its value.
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