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Article 1334 of the French Civil Code

The extinction of the old obligation extends to all its accessories. As an exception, the original collateral may be reserved to secure the new obligation with the consent of the third-party guarantors.

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Article 1335 of the French Civil Code

Novation agreed between the creditor and one of the joint and several debtors discharges the others. A novation agreed between the creditor and a guarantor does not release the principal debtor. It releases the other sureties to the extent of the contributory share of the one whose obligation has been novated.

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Article 1336 of the French Civil Code

Delegation is a transaction by which one person, the delegator, obtains from another, the delegate, an obligation to a third, the delegatee, who accepts it as a debtor. The delegate may not, unless otherwise stipulated, set up against the delegatee any exception drawn from its relationship with the delegator or from the relationship between the delegator and the delegatee.

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Article 1337 of the French Civil Code

Where the delegator is a debtor of the delegatee and the delegatee’s intention to discharge the delegator is expressly stated in the deed, the delegation constitutes novation. However, the delegator remains bound if it has expressly undertaken to guarantee the future solvency of the delegate or if the delegate is subject to a procedure for the discharge of its debts at the time of the delegation.

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Article 1338 of the French Civil Code

Where the delegator is indebted to the delegatee but the delegatee has not discharged him of his debt, the delegation gives the delegatee a second debtor. Payment made by one of the two debtors discharges the other, to the same extent.

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Article 1340 of the French Civil Code

The mere indication by the debtor of a person designated to pay in his place does not entail novation or delegation. The same applies to the mere indication made by the creditor of a person designated to receive payment on his behalf.

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