NCC Refer Not Only To Guarantors But To Surety As Well

Article 2066 and 2067, NCC explicitly pertain to guarantors. The argument that the provisions should not extend to sureties, especially in light of the qualifier in Article 2047 that the provisions on joint and several obligations should apply to sureties is not correct. The reference in the second paragraph of [Article 2047] to the provisions of Section 4, Chapter 3, Title I, Book IV, on solidary or several obligations, however, does not mean that suretyship is withdrawn from the applicable provisions governing guaranty. (Manila Surety & Fidelity Co. v. Barter Construction &  Co., et al., 53 Off. Gaz. 8836 & Arranz v. Manila Fidelity & Surety, Co., 53 Off. Gaz. 7247). For if that were not the implication, there would be no material difference between the surety as defined under Article 2047 and the joint and several debtors, for both classes of obligors would be governed by exactly the same rules and limitations.

Accordingly, the right to indemnification and subrogation as established and granted to the guarantor by Articles 2066 and 2067 extend as well to sureties as defined under Article 2047. These rights granted to the surety who pays materially differ from those granted under Article 1217 to the solidary debtor who pays, since the indemnification that pertains to the latter the share which corresponds to each debtor. (Escaño, et al. v. Ortigas, Jr., G.R. No. 151953, June 29, 2007).