If the guarantor is authorized to release the principal, or the surety is authorized to release the guaranteed party, is the original liability discharged?

Primary text

If the guarantor is authorized to release the principal, or the surety is authorized to release the guaranteed party, and the release occurs, the agent is also released because the agent's status is derivative of the principal obligation. When the original obligation is extinguished by release, the derivative obligation is also extinguished by that release.