Legal Definitions - beneficium ordinis

Definition: Beneficium ordinis (ben-ə-fish-ee-əm or-də-nis) is a Latin term that means "privilege of order." It refers to a surety's right to demand that a creditor first seek payment from the principal debtor before seeking payment from the surety. This right is also known as the benefit of discussion.

Example: Let's say John borrows $10,000 from a bank and his friend Tom acts as a surety for the loan. If John fails to repay the loan, the bank can demand payment from Tom as well. However, Tom can invoke the beneficium ordinis and require the bank to first try to collect the debt from John before coming after him.

This right is important because it protects the surety from being held responsible for the debt before the creditor has exhausted all other options for collecting it. It also ensures that the principal debtor is held responsible for their obligations before the surety is required to pay.