Repossessions: 12.9.1.3 Special Defenses and Protections for Cosigners; Does Article 3 or the Common Law Govern?
In addition to the other defenses and counterclaims set out earlier in this chapter, the surety has several special defenses and counterclaims to the deficiency action or suit on the note. For example, the surety may have a defense if the creditor modifies the terms of the obligation, releases the principal obligor, or fails to perfect a security interest in collateral.