B is corrent. The right of subrogation arises when the surety, pursuant to his contractual undertaking, fully satisfies the obligation of the principal debtor to the creditor and succeeds to the creditor’s rights against the debtor (i.e., "steps into the creditor’s shoes"). The surety acquires the identical claims or rights the creditor possessed against the principal debtor, permitting the surety to assert rights he otherwise could not assert.
A is incorrect because the right of subrogation exists regardless of whether it is explicitly provided for in the surety agreement.
C is incorrect because the right of subrogation is granted in bankruptcy. Since the surety is subrogated to the rights of the creditor, the surety is entitled to the same priority as the creditor would have in a bankruptcy proceeding.
D is incorrect because the right of subrogation can be asserted by a cosurety without including all other cosureties. However the other cosureties have the right to contribution.
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