A co-maker or surety, when sued alone, may, with the consent of the co-maker's or surety's co-maker or principal, use, by way of setoff, any of the debts or demands, held by the co-maker or principal against the plaintiff at the commencement of the action, and matured when offered in setoff, but the plaintiff may meet it in the same way as if made by the co-maker or principal who originally held the debts or demands.
Tenn. Code Ann. § 20-6-401
Setoff by co-maker or surety
Applied in 1 court decision — leading case McReynolds v. Cherokee Insurance Co. (1990)
Most recently applied in McReynolds v. Cherokee Insurance Co. (September 1990)
Code 1858, § 2920; Shan., § 4641; mod
Current official text: Tennessee Code (LexisNexis). Digitized from the UniCourt Code Improvement Commission public-domain capture. Reproduced from public-domain Tennessee statutes; confirm against the official source for the current text. Not legal advice.