Co-Surety means one who is surety along with others. That means, any of two or more sureties liable on the same obligation. When two or more persons stand as sureties for the same debt they are termed as co-sureties. Where two or more persons are co-sureties for the same or different contract, with or without the knowledge of each other, the co-sureties, in the absence of any contract to the contrary are liable as between themselves to pay each an equal share of the whole debt, or of that part of which remains unpaid by the principal debtor.
One type of co-surety is unlimited, in which each surety is mutually and severally liable for the full bond amount; a second type is limited, in which each surety is accountable for the payment of a stated bound of responsibility.
Co-Sureties are naturally used for huge construction projects where the bond amount exceeds a surety’s acceptable limit within that control and therefore two or more sureties are required to face the compulsion.
