(1) Where the surety has provided suretyship for an existing obligation for a specified period of time, then the surety is released at the end of the specified period of time, unless the creditor effects collection of the claim without undue delay under the provisions of section 772, continues the proceedings without any substantial delay and notifies the surety without undue delay after the end of the proceedings that they are claiming payment from the surety. If the surety is not entitled to the defence of failure to pursue remedies, then they are released at the end of a specified period of time, unless the creditor makes this notification to them without undue delay.
(2) If notification has been made in good time, then the liability of the surety in the case governed by subsection (1) sentence 1 is limited to the scope the main obligation has at the time at which the proceedings ended, or, in the case cited in subsection (1) sentence 2, to the scope the main obligation has at the end of the specified period of time.