ARTICLE III. RIGHTS OF SURETIES. BECTION 2844. Surety has rights of guarantor. 2845. Surety may require the creditor to proceed against the principal. 2846. Surety may compel principal to perform obligations, when due. 2847. A principal bound to reimburse his surety. 2848. The surety acquires the right of the creditor. 2849. Surety entitled to benefit of securities held by creditor. 2850 The property of principal to be taken first. § 2844. A surety has all the rights of a guarantor, whether he become personally responsible or not. § 2845. A surety may require his creditor to proceed against the principal, or to pursue any other remedy in his power which the surety cannot himself pursue, and which would lighten his burden; and if in such case the creditor neglects to do so, the surety is exonerated to the extent to which he is thereby prejudiced. 53 Cal. 689. § 2846. A surety may compel his principal to perform the obligation when due. § 2847. If a surety satisfies the principal obligation, or any part thereof, whether with or without legal proceedings, the principal is bound to reimburse what he has disbursed, including necessary costs and expenses; but the surety has no claim for reimbursement against other persons, though they may have been benefited by his act, except as prescribed by the next section. $ 2848. A surety, upon satisfying the obligation of the principal, is entitled to enforce every remedy which the creditor then has against the principal to the extent of reimbursing what he has expended, and also to require all his co-sureties to contribute thereto, without regard to the order of time in which they became such. § 2849. A surety is entitled to the benefit of every security for the performance of the principal obligation held by the creditor, or by a co-surety at the time of entering into the contract of suretyship, or acquired by him afterwards, whether the surety was aware of the security or not. § 2850. Whenever property of a surety is hypothecated with property of the principal, the surety is entitled to have the property of the principal first applied to the discharge of the obligation. ARTICLE IV. RIGHTS OF CREDITORS. SECTION 2854. Creditor entitled to benefit of securities held by surety. § 2854. A creditor is entitled to the benefit of everything which a surety has received from the debtor by way of security for the performance of the obligation, and may, upon the maturity of the obligation, compel the application of such security to its satisfaction. ARTICLE V. LETTER OF CREDIT. SECTION 2858. Letter of credit, what. 2859. How addressed. 2860. Liability of the writer. 2861. Letters of credit, either general or special. 2862. Nature of general letter of credit. 2863. Extent of general letter of credit. 2864. A letter of credit may be a continuing guaranty. 2865. When notice to the writer necessary. 2866. The credit given must agree with the terms of the letter. § 2858. A letter of credit is a written instrument, addressed by one person to another, requesting the latter to give credit to the person in whose favor it is drawn. § 2859. A letter of credit may be addressed to several persons in succession. § 2860. The writer of a letter of credit is, upon the default of the debtor, liable to those who gave credit in compliance with its terms. § 2861. A letter of credit is either general or special. When the request for credit in a letter is addressed to speci fied persons by name or description, the letter is special. All other letters of credit are general. § 2862. A general letter of credit gives any person to whom it may be shown authority to comply with its request, and by his so doing it becomes, as to him, of the same effect as if addressed to him by name. § 2863. Several persons may successively give credit upon a general letter. § 2864. If the parties to a letter of credit appear, by its terms, to contemplate a course of future dealing between the parties, it is not exhausted by giving a credit, even to the amount limited by the letter, which is subsequently reduced or satisfied by payments made by the debtor, but is to be deemed a continuing guaranty. § 2865. The writer of a letter of credit is liable for credit given upon it without notice to him, unless its terms express or imply the necessity of giving notice. § 2866. If a letter of credit prescribes the persons by whom, or the mode in which, the credit is to be given, or the term of credit, or limits the amount thereof, the writer is not bound except for transactions which, in these respects, conform strictly to the terms of the letter. TITLE XIV. LIEN. CHAPTER I. LIENS IN GENERAL, §§ 2872-2913. III. PLEDGE, §§ 2986-3011. V. RESPONDENTIA, §§ 3036-3040. CHAPTER I. LIENS IN GENERAL. ARTICLE I. DEFINITION OF LIENS, §§ 2872-2877. ARTICLE I. DEFINITION OF LIENS. SECTION 2872. Lien, what. 2873. Liens, general or special. 2874. General lien, what. 2875. Special lien, what. 2876. Prior liens. 2877. Contracts subject to provisions of this chapter § 2872. A lien is a charge imposed in some mode other than by a transfer in trust upon specific property, by which it is made security for the performance of an act. [In effect April 16, 1878.] But see Code Civ. Proc. § 1180. § 2873. Liens are either general or special. § 2874. A general lien is one which the holder thereof is entitled to enforce as a security for the performance of all the obligations, or all of a particular class of obligations, which exist in his favor against the owner of the property. § 2875. A special lien is one which the holder thereof can nforce only as security for the performance of a particular act or obligation, and of such obligations as may be incidental thereto. § 2876. Where the holder of a special lien is compelled to satisfy a prior lien for his own protection, he may enforce payment of the amount so paid by him, as a part of the claim for which his own lien exists. § 2877. Contracts of mortgage, pledge, bottomry, or re spondentia, are subject to all the provisions of this chapter. ARTICLE XI. CREATION OF LIENS. SECTION 2881. Lien, how created. 2882. No lien for claim not due. 2883. Lien on future interest. 2884. Lien may be created by contract. § 2881. A lien is created: 1. By contract of the parties, or, 2. By operation of law. § 2882. No lien arises by mere operation of law until the time at which the act to be secured thereby ought to be performed. § 2883. An agreement may be made to create a lien upon property not yet acquired by the party agreeing to give the lien, or not yet in existence. In such case the lien agreed for attaches from the time when the party agreeing to give it acquires an interest in the thing, to the extent of such interest. § 2884. A lien may be created by contract, to take immediate effect, as security for the performance of obligations not then in existence. ARTICLE III. EFFECT OF LIENS. SECTION 2888. Lien, or contract for lien, transfers no title. 2890. Creation of lien does not imply personal obligation. 2892. Holder of lien not entitled to compensation. § 2888. Notwithstanding an agreement to the contrary, a lien, or a contract for a lien, transfers no title to the property subject to the lien. § 2889. All contracts for the forfeiture of property sub. ject to a lien, in satisfaction of the obligation secured thereby, and all contracts in restraint of the right of redemption from alien, are void. |