If the creditor or obligee does not:

1. (1) proceed within a reasonable time to bring an action upon the contract; and

2. (2) prosecute the action to judgment and execution;

   the surety is discharged from all liability on the contract.

   [Pre-1998 Recodification Citation: 34-1-55-2.]

As added by P.L.1-1998, SEC.17.