Subrogation

The substitution of one person in the place of another as a ci'editor, — the new creditor succeeding to the rights of the former; the mode by which' a third person who pays a creditor succeeds to his rights against the debtor. Bispham defines it as the equity by which a person who is secondarily liable for a debt, and has paid it, is put in the place of the creditor, so as to entitle him to make use of all the securities and remedies possessed by the creditor, in order to enforce the right of exoneration as against the principal debtor, or of contribution against others who are liable in the same rank as himself. A, and that A holds, as additional security, a mortgage on real property belonging to B. If, now, C pays the debt, he will be entitled, on the principle of subrogation, to have an assignment of the mortgage, and to enforce it, as standing in A's place, and succeeding to his right. The same doctrine is also frequently applied when a junior incumbrancer is compelled, for his own protection, to pay off a prior lien. This equity of subrogation is one eminently calculated to do exact justice between persons who are bound for the performance of the same duty or obligation, and is, therefore, much encouraged and protected.

Bisp. Prin. Eq. § 335.

Subrogation denotes the putting a third person who has paid a debt, in the place of the creditor to whom he has paid it, so as that he may exercise against the debtor all the rights which the creditor, if unpaid, might have done. It is of two kinds, — either conventional or legal; the former being where the subrogation is express, by the acts of the creditor and the third person, the latter being (as in the case of sureties) where the subrogation is implied by the law.

Brown.