We deem it advisable to revive an ancient law long since established, and, for some reason with which We are not acquainted, fallen into disuse; which has reference to matters that are always delicate and necessary, and render it applicable to the present age. We do not, however, restore it as it was originally (for a portion of this law was not sufficiently clear), but We, with the assistance of God, have added to it what is suitable under the circumstances.

  When anyone loans money and accepts a surety, a mandator, or a bondsman, he should not first proceed against the said mandator, surety, or bondsman, nor should he negligently annoy those who are responsible for the debtor, but he should in the first place have recourse to him who received the money and contracted the debt; and if he collects what is due to him, he must refrain from suing the others, for what can he obtain from them after the indebtedness has been discharged by the debtor? If, however, he should not succeed in collecting part or the whole of the claim from the debtor, he can then have recourse to the surety, the bondsman, or the mandator, for the amount that he has not been able to collect, and can obtain from him the balance due; and this rule will apply when both the principal and surety, mandator, or bondsman are present. But where the surety, the mandator, or the person who rendered himself liable by a promise is present, but the principal debtor is absent, in this instance, it would be hard to send the creditor to collect his money elsewhere when he can at once recover it from the surety, mandator, or bondsman. It is necessary for Us to provide for this matter, as no remedy was afforded by the ancient law, although the eminent Papinianus was the first to suggest one. Therefore, the creditor can have recourse to either the surety, the bondsman, or the mandator, but the judge having jurisdiction of the case shall grant time to the surety, the bondsman, or the mandator if he wishes to make the principal debtor a party to the suit so as to force him to comply with his agreement and recourse be had to himself in the end, and the judge must assist the surety, the bondsman, or the mandator under these circumstances; for it has been decided that other persons of this kind can be released from liability in the meantime, and the principal debtor can be produced in court, when they have been subjected to annoyance on his account. If, however, the time granted the surety (the duration of which should be fixed by the judge) should have elapsed, then the surety, mandator, or bondsman shall be discharged; and the debt shall be collected from him in whose behalf he became responsible either as surety, mandator, or bondsman, and he will be subrogated to the creditors whose claims have been settled.

  A creditor cannot bring suit to recover the property of debtors which is in the hands of other persons, before bringing a personal action against the mandators, sureties, or bondsmen, having first brought suit against the principal debtor, or those in possession of the property; and if his claim should not be satisfied by this means, then he can have recourse to the property of the sureties, mandators, or bondsmen, or, where they themselves have anyone indebted to them, or who are liable to hypothecary actions, these may be held liable. We grant the creditor permission to proceed against the principals and their property (whether he prefers to make use of personal or hypothecary actions or both), which permission has already been given by Us, and We direct that he can avail himself of this right against the other persons who are liable under all circumstances. And We not only establish this rule with reference to creditors, but also if anyone should purchase property from another and take a surety (who is called a confirmator), and suit is afterwards brought against the vendor for the purpose of contesting the sale, the purchaser cannot proceed at once against the confirmator, nor, on the other hand, against whoever holds any property of the vendor; but he must first sue the vendor, and then have recourse to the bondsmen, and, in the third place, proceed against the party in possession. We order that, under the same circumstances, the rule which We have previously established in the case of sureties, mandators, and bondsmen shall, in case of either the presence or absence of debtors, also be observed by creditors in the collection of their claims. In like manner, this same rule shall apply to other contracts in which sureties, mandators, or bondsmen have been accepted, as well as to the principals on both sides and their heirs and successors, and shall benefit Our subjects because of the justice and order for which it provides.

  Even though what follows may, perhaps, not be agreeable to some creditors, still, for the sake of clemency, We decree that relief shall be granted to persons in financial distress. If anyone should lend money, believing that the borrower is solvent, and the latter has not the means to pay the debt in money, but has real estate, and his creditor insists upon payment in cash, it will not be easy for the debtor to discharge the obligation where he has no personal property, for We grant the creditor permission to accept land instead of money if he is willing to do so; but if no purchaser of the land can be found and the creditor prevents the purchase of the property and keeps buyers from being present by spreading it abroad that the property of the debtor is encumbered to him, then the judges in this Most Fortunate City of Our Glorious Empire, according to the extent of the jurisdiction which has been granted to them by the law and by Us, and in the provinces, the Governors, shall see that a correct appraisement of the property of the debtor is made, and afterwards possession of the land shall be given to the creditors in accordance with the amount of their claims, with such security as the debtor can furnish. When a transfer of the property is made in this way, the best part of it, whatever that may be, shall be given to the creditor, and what is of inferior value shall remain in the hands of the debtor, after the indebtedness has been discharged; for it would not be just for anyone to lend money and afterwards receive property that is not worth the amount of the loan; and where a creditor who is compelled to take possession of real property does not obtain the best of what belongs to the debtor, he is still indemnified, because, while he does not receive money or other personal property, he acquires possession of something which is not useless to him, for this is an example of the indulgence of the law. Creditors will recognize the fact that if We did not promulgate this law, necessity would compel the same thing to be done, for if the debtor does not have the money with which to pay the debt, and no purchaser of his real estate can be found, he can do nothing else than surrender it, and it will be transferred to the creditor, who would not otherwise receive what he was entitled to. Thus, having settled a question which might be productive of recrimination and bitter feeling to both creditor and debtor, and having decided at the same time mercifully and legally, thereby affording relief to unfortunate debtors, We shall not appear harsh to exacting creditors by permitting them to have recourse to a measure which, even if they did not consent, they would, nevertheless, finally be compelled to adopt. Hence, if a creditor is ready to provide a purchaser, the debtor will be obliged to sell the property, after furnishing such security as the judge may determine, and which it is possible for him to give; as provision must by all means be made for the indemnification of the creditors in such a way that debtors may not be oppressed.
  (1) In compliance with the ancient laws, We consider as a creditor everyone who has a right of action against another, even though their right may not be founded on a loan, but on some other contract, thus in the usual course of business sustaining the obligations of bankers for the benefit of contractors.

  Your Highness having been informed of what has been decreed by Us, with reference to the protection of Our subjects, will cause this law to be published by formal proclamation here as well as in all places subject to Our authority, so that Our subjects everywhere may ascertain how great has been Our solicitude for their welfare.