Civil law

Obligations of a guarantor

A suretyship contract despite being solidarity, can be partial, not extending to the whole of the obligation, something that is very common for example in mortgage lending, where one usually endorses a minor quantity to the whole of the loan, which is generally exceeding the guarantee pricing is defined as: the obligation that has to pay surety if a third party does not, so you should respond to the support with all their assets and regulation of the bail contract establishes a series of rights which attend the guarantor such as: exclusion, division and order, which modulate the situation of the guarantor.

suretyship contract

The latter consists of forcing the creditor to proceed first against the debtor or empowers the guarantor to designate the debtor’s assets so they are first directed against the latter, and referred to the possibility of dividing debt in as many as required parts exist for the payment.

The guarantees provided in financial contracts always exclude these rights of the guarantors and provided that the security pact is solidarity, which also cancels the aforementioned benefits, so the conclusion is drawn that financial contracts, the guarantor solidarity, holds against the creditor the same responsibility that the debtor himself in case of non-payment, answering for all debt and not being able to force the creditor to whom it goes first of all against the debtor’s assets.

The guarantor can claim against the person that endorsed one time has made the payment, and may claim the amounts paid along with the interests and the caused damages, but this rarely leads to given term which usually guarantees granted between relatives or guarantees in favor of legal persons by shareholders of a company.

It must be said that the bail is usually partial, as in mortgage lending, and does not extend to the whole of the obligation, often normally endorse less than the total of the loan, which generally tends to be that exceeds the appraisal amount.