D is corrent. Cosureties exist when more than one surety is bound to answer for the same debt or duty of a debtor, and who, as between themselves, should proportionately share the loss caused by the default of the debtor. The right of contribution arises when a cosurety, in performance of the debtor’s obligation, pays more than his proportionate share. This entitles the cosurety to compel the other cosureties to compensate him/her for the excess amount paid. Contribution is the right which only a cosurety is entitled to.
A is incorrect. Subrogation is available to both a surety and a cosurety. The rule of subrogation states that the surety or cosurety, to the extent s/he has paid, succeeds to the creditor’s rights against the principal debtor, including the rights to any security interests the creditor might have in the debtor’s property.
B is incorrect. Exoneration is available to both a surety and a cosurety. Specifically, exoneration allows the surety or cosurety to file a suit in equity to compel the debtor to pay the creditor before the surety or cosurety pays the debt.
C is incorrect. Reimbursement is available to both a surety and a cosurety. Reimbursement (indemnification) is the surety’s or cosurety’s right to recover the amount paid from the principal debtor.
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