Legal Problems of Section 227 About the Debtor Subrogating to the Creditor in Property
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Abstract
The Civil and Commercial Code section 227 prescribes that “when a creditor has received as compensation for damage the full value of the thing or right which is the subject of the obligation, the debtor is, by operation of law, subrogated into the position of the creditor with regard to such thing or right.” There are some academic views which are in line with the legal opinion that the debtor, who paid compensation for damage the full value of the thing or right which is the subject of the obligation, is subrogated into the position of the creditor about personal rights and real rights of such thing or right. However, there is an academic view which argues that the debtor is subrogated into the position of the creditor with only the personal rights. The authors agree with the latter scholarly view for a variety of reasons that, under the Section 227, only personal rights are subrogated.
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