1. CHAPTER 39: CREDITOR RIGHTS, RESPONSIBILITIES, AND REMEDIES

2. Learning Objectives: Artisan’s Liens Suretyships Mechanic’s Liens Chapter 392 CHAPTER 39: CREDITOR RIGHTS, RESPONSIBILITES, AND REMEDIES

3. 1.Definition: a security interest in personal property in favor of one who has performed services on the property. 2.Essence: Right to Keep Possession 3.Exceptions: a.Temporary surrender b.Recording of notice of lien Chapter 393 ARTISAN’S LIEN

4. 1.General Aspects a.Definition: a security is promise of a third party to be responsible for debtor’s obligation. b.Nature of Relationships: i.Surety: Primarily liable, along with debtor ii.Guarantor: Secondarily liable iii.Guaranty Agreements iv.Today: Little difference c.Indemnity: provides security to debtor. Chapter 394 SURETYSHIP

5. 1.General Aspects…. d.Creation of Suretyship Contracts i.Gratuitous ii.Compensated e.Liability of the Parties: Dependent Upon Type of Relationship Chapter 395 SURETYSHIP

6. 2.Creditor-Surety Relationship a.Fiduciary Aspects b.Principal’s Default: Notice i.Rule: Formal notice need not be given to the surety. ii.Exceptions: I.Required by contract II.Drawer or Indorser III.Only guarantees collection Chapter 396 SURETYSHIP

7. 3.Creditor-Surety Relationship c.Surety’s Performance and Subrogation Rights i.Surety’s Duty to Perform ii.Subrogation: substitution of one party (surety) for another (principal). Chapter 397 SURETYSHIP

8. 4.Creditor-Principal Relationship a.Overview b.Principal’s Defenses to Perform i.Capacity ii.Bankruptcy iii.Statute of limitations c.Release i.Essence ii.Exceptions Chapter 398 SURETYSHIP

9. 4.Creditor-Principal Relationship d. Modifications i.Extensions of Time for Payment ii.Surety’s Consent iii.Note: Rule for Uncompensated vs. Compensated Sureties Chapter 399 SURETYSHIP

10. 5.Principal-Surety Relationship a.Surety’s Duty to Account b.Surety’s Right to Reimbursement c.Liability of Co-Sureties Chapter 3910 SURETYSHIP

11. 1.Definition: lien on real estate for value of materials and labor expended in the construction of buildings and other improvements. 2.Potential Lienholders 3.Perfection and Enforcement 4.Priorities 5.Protection Against Liens Chapter 3911 MECHANIC’S LIENS

12. 1.Writ of Execution 2.Garnishment 3.Citation Proceedings 4.Attachment 5.Is it Worth it? Chapter 3912 ENFORCEMENT OF JUDGMENTS AND DECREES

13. CHAPTER 39: CREDITOR RIGHTS, RESPONSIBILITES, AND REMEDIES