It is a general rule of law that the grantee of mortgaged premises, who agrees to assume the mortgage, becomes the principal debtor for the payment of the mortgage, and that the grantor of the premises becomes the surety with all the rights of a surety. In the case of Moore vs. Topliff,13 notes were given by a partnership firm composed of A, B and C and indorsed to third parties, which notes were secured by a mortgage to the creditors, from C, on the real estate. A afterward sold out all his interest in the firm to B and C, who assumed all the firm indebtedness, and formed a new partnership, the new firm paying interest on the notes until their bankruptcy, in which proceedings in bankruptcy the creditors proved their debts, and received forty-two per cent as a composition, in full discharge of the personal liability of B and C. Held, that as A was still personally liable on the notes as surety for B and C the mortgage was not extinguished, and that A's existing equity, as surety, to have the mortgage security surrendered by the creditors to him upon his payment of the balance of the debt, was unaffected by the bankruptcy discharge.

9 Welsh vs. Ebersole, 75 Va., 656.

10 Matthews vs. Millsaps, 58 Miss., 564.

11 Weeks vs. Parsons, 176 Mass., 570. 12 Allen vs. State, 61 Ind., 268.

The obligation of the surety will not be implied, yet the law itself will extend the privileges and rights of a surety, to one who is bound to answer for the default of others who by their agreement, contracted to meet the indebtedness and relieve the person who subsequently has to pay the debt, which the other person's default has put back on his shoulders.14