MARVIN MANDEL, Governor

629

PAYMENT OF MONEY OR A PROMISSORY NOTE, OR THE ENDORSER OF
A PROTESTED DRAFT, PAYS OR TENDERS THE MONEY DUE ON IT IN
FULL, HE IS ENTITLED TO AN ASSIGNMENT OF IT AND, BY
VIRTUE OF THE ASSIGNMENT, MAY MAINTAIN AN ACTION IN HIS
NAME AGAINST THE PRINCIPAL DEBTOR.

REVISOR'S NOTE: This section presently appears as
Art. 8, §3, This statute was originally
enacted in 1763 and is merely declaratory of
the common law. See. Ch, 23, §§ 7 and 8, Acts
of 1763 and Watkins v. Worthington, 2 Bland
509 (1828). The purpose of this section is to
place the surety "in the shoes of the judgment
creditor, and embraces all kinds of sureties
so as to include within its operation the
suretyship of an accommodation maker of a
promissory note and an original payee of a
note who subsequently indorsed it for
transfer." See Wallace v. Jones, 110 Md. 143
(1909); Colegate v. Frederick Town Savings
Inst., 11 Gill & J 114 (1840); and Fuhrman v.
Fuhrman, 115 Md. 436 (1911).

The words "in full" are added to emphasize
that the surety's right to subrogation depends
on the payment of the entire debt. The surety
cannot demand a pro tanto assignment. See
Dinsmore v. Sachs. 133 Md. 437 (1918) and
Nelson v. Close. 147 Md. 214 (1925).

The words "whether the whole be due or part
has been previously paid" are deleted as
unnecessary.

The word "draft" is substituted for "bill of
exchange" for the purpose of uniformity. For a
form of negotiable instruments, see §3-104 of
this article.

The only other changes are in style.

For discussion on the equitable doctrine of
subrogation, see 3 Md. Law Rev. 201 (1939).

15-402. ACTION BY ASSIGNEE ON OBLIGATION UNDER SEAL.

(A) ACTION AGAINST OBLIGOR.

SUBJECT TO THE PROVISIONS OF SUBSECTION (D) OF THIS
SECTION, THE ASSIGNEE OF A BOND OR OTHER OBLIGATION UNDER
SEAL WHICH WAS ASSIGNED UNDER THE ASSIGNOR'S SIGNATURE
AND SEAL, MAY MAINTAIN AN ACTION IN HIS NAME AGAINST THE
OBLIGOR NAMED IN THE BOND OR OTHER OBLIGATION.