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A is corrent because the surety will be discharged by the creditor’s refusal to accept the principal debtor’s tender of full payment on a mature debt. However, the tender of full payment will not discharge the principal debtor but will merely stop the running of interest on the monetary obligation.
B is incorrect because, unless the contract states otherwise, the creditor has no duty to notify the surety of the principal debtor’s default.
C is incorrect because a surety may not exercise the principal debtor’s personal defenses (i.e., insanity).
D is incorrect because even though a release of the principal debtor without the surety’s consent will usually discharge the surety, there is no discharge if the creditor expressly reserves his rights against the surety.