"Subrogation" means - in relation with legal right or claim - the substitution of an entity or person into the place of another. If pursuant to a payment guarantee a bank indemnifies a creditor against a defaulted debtor, then the bank is automatically subrogated (it is the "Subrogee") and can exercise any available remedies against the defaulted debtor, as if it were the initial creditor (the "Subrogator").

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