(a) After any note, bill, bond, or other obligation becomes due and payable, any surety,
indorser, or guarantor thereof may give written notice to the holder or owner of the
obligation requiring him to use all reasonable diligence to recover against the principal
and to proceed to realize upon any securities which he holds for the obligation.
(b) The surety, indorser or guarantor who gives notice to the holder or owner of the
obligation as provided by subsection (a) shall forthwith give written notice to all
co-sureties, co-indorsers and co-guarantors of the fact that such notice is being
given to the holder or owner of the obligation, and such co-sureties, co-indorsers
and co-guarantors shall have ten days after receipt of the notice in which themselves
to give written notice to the holder or owner of the obligation and to their co-sureties,
co-indorsers, and co-guarantors, that they join in or adopt the notice given pursuant
to subsection (a). Failure of such surety, indorser or guarantor to give the required notice to co-sureties,
co-indorsers or co-guarantors whose names and residences are known to him or can be
obtained by due diligence bars such surety indorser or guarantor from any of the benefits
of G.S. 26-9.
(c) The holder or owner of the obligation shall on demand disclose to any surety,
indorser, or guarantor of the obligation the names and addresses of all other sureties,
indorsers and guarantors which appear on the obligation or of which he has knowledge.
(d) Nothing herein contained shall apply to official bonds, or bonds given by any
person acting in a fiduciary capacity.
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