Ar cle 691 The scope of the suretyship covers the principal claims and the interest thereof, the liquidated
damages, compensatory damages, and the expenses for enforcing the claim, unless otherwise agreed by the
par es.
Ar cle 692 The term of suretyship is the period during which the surety shall undertake suretyship liability,
and such period shall not be suspended, interrupted, or extended.
A creditor and a surety may agree on the term of suretyship. However, where the expira on date of the
agreed term of suretyship is earlier than or the same as the expira on me for performance of the principal
obliga on, it is deemed as there is no agreement on the term of suretyship. Where there is no agreement
between the par es on the term of suretyship or the agreement is unclear, the term of suretyship shall be six
months from the date of expira on of the me limit for performance of the principal obliga on.
Where a creditor and a debtor fail to agree on the me limit for performance of the principal obliga on or
the agreement is unclear, the term of suretyship shall be counted from the date when the grace period for
the creditor to request the debtor to perform the obliga on expires.
Ar cle 693 Where a creditor of a general suretyship fails to le a lawsuit or apply for arbitra on against the
debtor within the term of suretyship, the surety no longer bears the suretyship liability.
Where a creditor of a suretyship with joint and several liability fails to request the surety to undertake his
suretyship liability within the term of suretyship, the surety no longer bears the suretyship liability.
Ar cle 694 Where a creditor of a general suretyship les a lawsuit or apply for arbitra on against the debtor
prior to the expira on of the term of suretyship, the limita on period of the suretyship obliga on shall be
counted from the date when the surety’s right to refuse to undertake the suretyship liability is ex nguished.
Where a creditor of a suretyship with joint and several liability requests the surety to undertake his
suretyship liability prior to the expira on of the term of suretyship, the limita on period of the suretyship
obliga on shall be counted from the date when the creditor requests the surety to undertake his suretyship
liability.
Ar cle 695 Where a creditor and a debtor, without the surety’s consent in wri ng, agree to alter the content
of the principal claim-obliga on contract, if the obliga on is reduced, the surety shall con nue to bear the
suretyship liability for the altered obliga on; if the obliga on is increased, the surety shall not bear the
suretyship liability for the increased part.
Where a creditor and a debtor alter the me limit for performance of the principal claim-obliga on
contract,the term of suretyship shall not be a ected unless upon the surety’s wri en consent.
Ar cle 696 Where a creditor transfers his claim in whole or part without no fying the surety, such a transfer
is not e ec ve against the surety.
Where transfer of a claim is prohibited as agreed between the surety and the creditor, if the creditor
transfers its claim without the surety’s wri en consent, the surety shall no longer bear the suretyship
liability.
Ar cle 697 Where a creditor, without the surety’s wri en consent, allows the debtor to transfer the
obliga on in whole or part, the surety shall no longer bear the suretyship liability to the extent of the
obliga on transferred without his consent, unless otherwise agreed by the creditor and the surety.
Where a third person joins to be one of the debtors, the surety’s liability shall not be a ected.
Ar cle 698 Upon expira on of the me limit for performance of the principal obliga on, if the surety of a
general suretyship provides to the creditor true informa on concerning the debtor’s property available for
enforcement, but the creditor waives or fails to exercise his right, and thus causing such property to be
unenforceable, the surety shall no longer bear liability to the extent of the value of the said property
available for enforcement the informa on of which is provided by the surety.
Ar cle 699 Where there are two or more sure es guaranteeing one obliga on, the sure es shall undertake
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