What to do the guarantor if the borrower does not pay a loan?


As soon as the borrower ceases to pay for credit obligations, debts begin to recover from the guarantor, and here he is already beginning to be interested in what to do?

The legislation of the Russian Federation includes several options for providing commitments. The guarantee suggests that the third person takes over the obligation to pay the loan in whole or in part, if the borrower ceases to fulfill its duties to the financial institution independently.

The credit institution has the right to decide individually, at what point is to turn to the guarantor, and whether to act at all. In practice, this happens as a last resort if the main borrower has long to refuse to pay for obligations and does not respond to the creditor’s requirement.

The guarantor to the lender has not only responsibilities, but also the rights:

Based on Article 363 of the Civil Code of the Russian Federation, the guarantor responds on a par with the main borrower in front of the lender, unless otherwise provided by the loan agreement. This means that both persons will act as defendants in legal proceedings, and as a result, the decision of the court of recovery by duties will be accumulated from both, depending on the availability of cash and property.

As soon as the court makes a court decision, the bailiff begins enforcement proceedings. The specialist will search for property and cash with both debtors, and the recovery will be made from whether the property will be discovered earlier.

Stage before signing the contract of guarantee.

Before signing the contract, it is necessary to carefully examine all the conditions offered and make their amendments. If you plan to become a guarantor under lending contract, insist on subsidiary responsibility. In this case, the credit institution will be able to make you a requirement for payment when measures have already been applied to the main borrower, and it has not been to money.

Pay attention to the term of the contract of guarantee, and the rights of the financial institution to change the terms of the contract unilaterally. So you can save ourselves from the risks of payment for obligations several times more, from the initial amount.

Stage after signing a guarantee agreement.

If the contract is already signed, depending on the situation, the problem arise can be solved in several ways:

Thus, guarantee is a certain way of providing credit obligations, in which the person takes responsibility to repay the debt for the main debtor, in case of insolvency. However, do not everyone know that after the payment of the payment by the guarantor, he actually receives the creditor rights and can use the same mechanisms for the impact on the debtor as the financial organization.