IV. G. — 1:106 Several security providers: internal recourse

In the cases covered by the preceding Article recourse between several providers of personal security or between providers of personal security and of proprietary security is governed by III. — 4:107 (Recourse between solidary debtors), subject to the following paragraphs.

Subject to paragraph (8), the proportionate share of each security provider for the purposes of that Article is determined according to the rules in paragraphs (3) to (7).

Unless the security providers have otherwise agreed, as between themselves each security provider is liable in the same proportion that the maximum risk assumed by that security provider bore to the total of the maximum risks assumed by all the security providers. The relevant time is that of the creation of the last security.

For personal security, the maximum risk is determined by the agreed maximum amount of the security. In the absence of an agreed maximum amount, the value of the secured right or, if a current account has been secured, the credit limit is decisive. If a secured current account does not have a credit limit, its final balance is decisive.

For proprietary security, the maximum risk is determined by the agreed maximum amount of the security. In the absence of an agreed maximum amount, the value of the assets serving as security is decisive.

If the maximum amount in the case of paragraph (4) first sentence or the maximum amount or the value, respectively, in the case of paragraph (5) is higher than the value of the secured right at the time of creation of the last security, the latter determines the maximum risk.

In the case of an unlimited personal security securing an unlimited credit the maximum risk of other limited personal or proprietary security rights which exceed the final balance of the secured credit is limited to the latter.

The rules in paragraphs (3) to (7) do not apply to proprietary security provided by the debtor and to security providers who, at the time when the creditor was satisfied, were not liable towards the latter.