IV. G. — 2:113 Security provider's rights after performance

The security provider has a right to reimbursement from the debtor if and in so far as the security provider has performed the security obligation. In addition the security provider is subrogated to the extent indicated in the preceding sentence to the creditor's rights against the debtor. The right to reimbursement and rights acquired by subrogation are concurrent.

In case of part performance, the creditor's remaining partial rights against the debtor have priority over the rights to which the security provider has been subrogated.

By virtue of the subrogation under paragraph (1), dependent and independent personal and proprietary security rights are transferred by operation of law to the security provider notwithstanding any contractual restriction or exclusion of transferability agreed by the debtor. Rights against other security providers can be exercised only within the limits of IV. G. — 1:106 (Several security providers: internal recourse).

Where the debtor due to incapacity is not liable to the creditor but the security provider is nonetheless bound by, and performs, the security obligation, the security provider's right to reimbursement from the debtor is limited to the extent of the debtor's enrichment by the transaction with the creditor. This rule applies also if a debtor legal entity has not come into existence.