Agreement With Guarantee

Note that the borrower or debtor has primary responsibility to the lender in the event of a loan or financing contract, as the liability of the surety arises only in the case of the debtor`s default. The most productive reason for firing a guarantor is usually the result of the creditor`s behaviour. The principle of the rule is that if the creditor violates all the rights that the creditor held when he received the guarantee, while the damage is only nominal, the guarantee cannot be implemented. Guarantee relief may be made (1) by a change in the terms of the contract between the creditor and the principal debtor or between the creditor and the surety company; [74] (2) by the assumption of a new guarantee by the principal debtor instead of the original debtor; (3) by the creditor who releases the principal debtor from liability; (4) by the creditor who undertakes to give the principal debtor the time necessary to pay the secured debt; or (5) by loss of securities received by the creditor in respect of secured debt. The first four of these acts are collectively referred to as “innovation.” In general, the main obligation necessarily determines that of the guarantee, not only in England, but also elsewhere. [75] According to most civil codes, the guarantee is discharged by the creditor`s conduct, which is incompatible with the guarantee rights,[76] although the rule in England, Scotland, America and India exempts the guarantee of liability if the creditor extends the time to complete the principal debt without the creditor`s agreement. , while it is recognized by two existing civil codes,[77] is rejected by the majority of them. [78] The revocation of the parties` bond contract by deed or, in some cases, the death of the guarantee, may also be used to lighten the guarantee. Due to the current lack of information on the types of “authorizations, authorizations or agreements” provided for in the guarantee agreement [see p. 41], a full analysis of the issuance of “licences and authorizations” cannot be carried out without the appropriate documents and therefore ends, without prejudice to the subsequent examination of the issue, as soon as this information is provided by the EIB. A guarantee agreement is often common for tuition loans, for which the government serves as guarantor. In this case, if the student defaults on the loan, the bank will call on the government to recover the outstanding credit debts.

The second condition is Lord Tenterden`s law,[13] which states that there is “no action to incriminate a person on or on the basis of a particular insurance or insurance or insurance given to another person with respect to the character, behaviour, credit, bargaining ability or trade of another person, for the purpose or purpose of allowing another person to obtain credit. , money or goods, unless the undertaking or undertaking is signed in writing by the party that is invoiced here. [14] Lord Tenterden`s law, which applies to registered companies and individuals,[15] was necessitated by circumvention of the Fraud Act, treatment of the guarantee of a debt, default or miscarriage, other than in writing as a fraudulent submission resulting in prejudice for an unlawful act. [16] [17] For example, if a surety has guaranteed payment of the sum of ₦50,000 and the borrower is unable to repay 100,000 ₦ and cannot repay that amount, The surety is only required to pay the 50,000 ₦ (since the guaranteed amount) and the lender or creditor must follow the borrower for the balance – 50,000 ₦.