§ 359.5.Obligations Under Surety Bond Continued Upon Performance of Principal
Title 2. Of the Time of Commencing Civil Actions · Chapter 4. General Provisions as to the Time of Commencing Actions · Enacted 1982 · no amendments on record · Last verified July 28, 2026
Full Text of § 359.5
Plain-English Summary
Section 359.5 ties the fate of a surety bond claim to the underlying obligation it secures. When a surety bond conditions its obligations on the principal's performance, the expiration of the limitations period on the principal's own obligations — apart from the principal's obligations under the bond — also bars a claim against the principal or the surety under the bond.
The rule yields to contrary bond language: if the bond's own terms provide otherwise, this default bar does not control. Absent such terms, a plaintiff who lets the underlying claim against the principal go time-barred loses the bond claim along with it.
Frequently Asked Questions
If my claim against the principal is time-barred, can I still sue on the surety bond?
Generally not. Section 359.5 provides that the expiration of the limitations period on the principal's underlying obligations also bars an action against the principal or surety under the bond, unless the bond's terms say otherwise.
Can a bond's own terms change this rule?
Yes. Section 359.5 applies unless the bond provides otherwise, so the parties can draft around the default bar in the bond's own language.
Amendment History
Added by Stats. 1982, Ch. 106, Sec. 1.