(1) Where an obligee has or is aware of, at the time of concluding a suretyship agreement, any credit information concerning the principal obligor's obligations which may affect the decision on whether to conclude a suretyship agreement or any terms and conditions thereof, he or she shall notify the surety of such credit information. The same shall also apply where a suretyship agreement is renewed.
(2) Every obligee shall give written notice to the surety upon the occurrence of any of the following events after concluding a suretyship agreement:
1. Where the principal obligor fails to pay the principal, interest, penalty, compensation, or other charges incidental to the principal obligation for at least three months;
2. Where the obligee becomes aware in advance that the principal obligor is unable to perform his or her obligations at the time for performance;
3. Where the obligee becomes aware of that a significant change has been made to the credit information concerning the principal obligor's obligations.
(3) If requested by the surety, the obligee shall notify him or her of the details of the principal obligation and whether such obligation is performed.
(4) Where an obligee inflicts a loss on the surety for a violation of any of his or her duties prescribed in paragraphs (1) through (3), the court may grant a reduction of, or exemption from, the surety obligations, depending on the details, degree, etc., of the relevant violation.[This Article Added on Feb. 3, 2015]