In this video, I discuss cosureties in suretyship as covered on the CPA exam.
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Cosureties are multiple individuals or entities who collectively guarantee the same obligation or debt. They are "jointly and severally liable," meaning each cosurety can be held responsible for the entire debt, not just a portion of it.

Exoneration:
What it is: When cosureties have to pay the creditor, one of them can take legal action (a suit in equity) to make the other cosureties pay their fair shares. This is called exoneration.
Why it matters: It ensures that one cosurety doesn't unfairly bear the whole burden of the debt.
Contribution:
What it is: After a cosurety pays more than their share of the debt, they have the right to ask the other cosureties to pay back their respective parts. This is known as contribution.
Difference from Exoneration: Contribution comes into play after payment has been made, whereas exoneration is about preventing unfair payment in the first place.
Pro Rata Share:
General Rule: If the contract doesn't specify each cosurety's liability, they each owe an equal part, depending on the number of solvent cosureties.
Illustrative Examples:
Solvent vs. Insolvent Cosureties:

Scenario: Suppose there are five cosureties, three of whom are solvent (able to pay) and two are insolvent (unable to pay).
Liability: Each solvent cosurety would owe one-third of the debt, since the insolvent cosureties cannot contribute.


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