be recovered from the debtor, the amount that had been set aside from the deceased guarantor’s estate is handed over to the creditor, and the guarantor’s heirs may then seek repayment from the debtor. If the debtor dies before the due date, the sum is taken from his estate and the guarantor is released; but if he leaves no assets, nothing is taken from the guarantor until the term falls due.

If a man sells a commodity on credit to two purchasers and stipulates in writing that each of them guarantees the other—one living for one dead, the solvent for the insolvent—and one of the two dies while the other is present or absent, and the creditor wishes to claim the whole debt from the deceased’s estate before the due date, he may do so, for upon death every outstanding debt becomes immediately payable. Should the creditor take from the deceased’s estate the entire amount owed by both partners, the deceased’s heirs may, once the term matures, pursue his partner for half of that sum.

Bankruptcy in this context is treated like death: the creditor files his claim with the other creditors of the bankrupt for the full amount owed by the two partners. If he succeeds in recovering his right in full, the bankrupt may, when the due date arrives, reclaim from his partner that partner’s share of what was taken.