– Re: Info from Top Court Clerk/Registrar
In Reply To
3 Parties to every transaction. Creditor, debtor, and you, the surety.
The birth certificate you have is an indemnity security. It is not issued to indemnify you but a claimant, seller, creditor; anyone or entity seeking or expecting performance or payment. In that sense you are indemnified.
The holder of this security is to show it to a claimant to indicate to the claimant to where he she or it is to go for payment or performance. One may do so via a photocopy of the BC/indemnity security. The security is same as proof of insurance.
The issuer of the indemnity security, the principal debtor, is and has always been on the hook to pay for property.
If you paid or performed you did so on behalf of the issuer of the security, the principal debtor. If you paid you are entitled to full reimbursement.
But there is another method of operation that when discovered one will no longer have to pay only to be reimbursed. I will not say here what that is for each should have the knowledge and understanding internalized. No one else can do this for you. I will say there is a provision in the Ontario Financial Administration Act regarding guarantee and indemnity. It is of paramount assistance.
A surety may invoke all rights of subrogation. This is an equitable right. The surety is King. The surety may demand the principal debtor, issuer of the BC, perform.
This knowledge may be used to stop the involvement of you as party to any and all claims and it matters not the type of claim. The only reason they come after you is, you used a BC as personal identification in the stead of an indemnity security. All they want is want payment of performance. It's all about the money. All claims are about the money and that includes criminal.
Indemnify a claimant you indemnify you. Indemnity is to protect against loss or other financial burden.
Mercantile Law Amendment Act
Right of sureties paying the principal debt, etc., to assignment
2. (1) Every person who, being surety for the debt or duty of another or being liable with another for any debt or duty, pays the debt or performs the duty is entitled to have assigned to the person or to a trustee for the person every judgment, specialty or other security that is held by the creditor in respect of the debt or duty, whether the judgment, specialty or other security is or is not deemed at law to have been satisfied by the payment of the debt or the performance of the duty. R.S.O. 1990, c. M.10, s. 2 (1).
Remedies on such assignment
(2) Such person is entitled to stand in the place of the creditor, and to use all the remedies and, on proper indemnity, to use the name of the creditor in any action or other proceeding in order to obtain from the principal debtor, or any co-surety, co-contractor or co-debtor, indemnification for the advances made and loss sustained by such person, and the payment or performance made by the person is not a defence to such action or other proceeding by the person. R.S.O. 1990, c. M.10, s. 2 (2).
Gibson's Suits in Chancery is a good source to gain understanding. There is a section on sureties, exoneration, and subrogation.
This has been legislated in Ontario Law.
This may be my final post here