McKeesport National Bank v. Rosenthal

WIEAND, Judge:

Where the obligation of a surety is absolute and unconditional, is it subject to extinguishment or reduction because the obligee has failed to exercise diligence in collecting accounts receivable which have been assigned by the principal debtor as security for the indebtedness? The trial court held that the creditor’s failure to exercise diligence to enforce the accounts receivable constituted a defense to the surety’s liability. Therefore, the court opened a judgment confessed against the surety after a default by the principal debtor. We reverse.

North American Trading Company…