Subject to the jurisdiction of the court of the place

subject to the jurisdiction of the court of the place where
this obligation is to be complied with. (1828a)
ART. 2057. If the guarantor should be convicted in
first instance of a crime involving dishonesty or should
become insolvent, the creditor may demand another who
has all the qualifications required in the preceding article.
The case is excepted where the creditor has required and
stipulated that a specified person should be the guarantor.
(1829a)
Qualifications of guarantor.
The qualifications of a guarantor are:
(1) He possesses integrity;
(2) He has capacity to bind himself; and
Arts. 2056-2057 GUARANTY AND SURETYSHIP
Nature and Extent of Guaranty

COMMENTS AND CASES ON CREDIT
TRANSACTIONS
264
(3) He has sufficient property to answer for the obligation
which he guarantees.
It is evident that a guarantor without the above-mentioned
qualifications would be useless. Of course, the creditor can waive
the requirements. The second sentence of Article 2056 is based on
the principle that the accessory follows the principal. (see Art.
1251.)
Effect of subsequent loss of required
qualifications.
The qualifications need only be present at the time of the
perfection of the contract. So, the subsequent loss of integrity or
property or supervening incapacity of the guarantor (Art. 2057.)
would not operate to exonerate the guarantor of the eventual
liability he has contracted, and the contract of guaranty continues.
However, the creditor may demand another guarantor with
the proper qualifications. (Ibid.) But he may waive it if he chooses
and hold the guarantor to his bargain. (Estate of K.H. Hemady
vs. Luzon Surety Co., Inc., 100 Phil. 388 [1956].)
Note that Article 2057 requires conviction in the first instance
of a crime involving dishonesty; but a judicial declaration of
insolvency is not necessary in order for the creditor to have the
right to demand another guarantor.
ILLUSTRATIVE CASE:
Creditor (surety) filed a contingent claim against the estate of
surety (indemnitor) on bonds executed by the latter before his death.
Facts: L Surety Co. filed a claim against the Estate of H
on the different indemnity agreements or counterbonds, each
subscribed by a distinct principal and by the deceased H, a
surety (solidary guarantor) in all of them in consideration of L’s
having guaranteed the various principals in favor of different
creditors.
L prayed for allowance, as a contingent claim, of the value
of the counterbonds. The lower court dismissed the claim on
the ground that “whatever losses may occur after H’s death,
are not chargeable to his estate, because upon his death he
ceased to be a guarantor.”
Arts. 2056-2057

265
Issue: Is a guarantor’s liability extinguished by his death?
Held: No. (1) Under the law (see Art. 1311.), the general
rule is that a party’s contractual rights and obligations are
transmissible to his successors. The articles of the Civil Code
that regulate guaranty and suretyship (Arts. 2047-2084.)
contain no provision that the guaranty is extinguished upon
the death of the guarantor or the surety.