What happens if the surety or principal obligor reaches a compromise with the obligee for a portion of the debt?
If a composition is made, both the surety and principal obligor will be discharged from the remaining balance. If the agreement specifies that only the surety should be discharged, the obligee can choose to collect the agreed amount from the surety and the remaining balance from the principal obligor. Alternatively, the obligee can decide not to take any action against the surety and instead pursue the entire debt from the principal obligor.