Cap. 16 Art. 1165Subrogation by agreement.

(1) The payer shall be subrogated to the rights of the creditor, by agreement -

(a) when the creditor subrogates the payer to all his rights against the debtor, provided such subrogation is expressly stated, and made simultaneously with the payment;

(b) when the debtor borrows a sum for the purpose of discharging his debt, and of subrogating the lender to the rights of the creditor: Provided that such subrogation shall not be valid unless -

(i) the loan and the discharge are made by a public deed,

(ii) it is stated in the deed of loan that the sum has been borrowed in order to discharge the debt, and

(iii) it is stated in the discharge that the payment has been made with the money furnished for the purpose by the new creditor.

(2) The subrogation referred to in paragraph (b) of sub-article

(1) of this article shall take place independently of the consent of the creditor.