D is corrent because a cosurety is not released from his obligation to perform merely because his cosurety refuses to perform. However, upon payment of full obligation, the cosurety can demand a pro rata contribution from his/her nonperforming cosurety.
A is incorrect because a cosurety is entitled to the right of subrogation, meaning that the cosurety succeeds to the rights of the creditor upon satisfying the obligation of the debtor.
B is incorrect because a cosurety is entitled to the right of exoneration meaning that a cosurety may sue the debtor to compel payment of the obligation to the creditor if the debtor has sufficient assets and is wrongfully withholding payment. The only time that a surety is denied the right of exoneration is when the creditor demands prompt payment from the surety upon the debtor’s default.
C is incorrect because a cosurety is entitled to the right of contribution meaning that the surety can demand a pro rata contribution by his fellow surety or sureties if he pays the full amount.
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