Today it is continually said that borrowers don’t repay to monetary institutions their debts under the credits. Thus it is necessary to notice that suffers not only bank system of the state, but also those people who acted at borrowers as guarantors. After all from them the banks demand indebtedness returning of means in case of the borrower doesn’t hasten to pay off debts.
The guarantor names as a legal or the physical body incurring responsibility before the creditor for other person in respect of accomplishment by that all necessary credit obligations. Better to say, in a case when the borrower postdates loan payout or doesn’t return it in general, the bank has the right to withdraw the finance belonging to him from the guarantor. Thus the guarantor has no possibility to get rid of the responsibility assigned to him.
Many financial organizations have toughened requirements in relation to the clients because of crisis, therefore now to obtain the credit it is possible only in the presence of one and it is better in presence of two guarantors. As a rule, the great sum is inquired by the bank client then he should give greater number of guarantors. The matter is that availability of guarantors is some kind of a guarantee of return of the credit to bank. Besides, this fact considerably reduces risk of registration of a loan to unfair payers.
Among the basic requirements shown to the guarantor appears availability at him of necessary amount of money in a case of debt settlement instead of the borrower taking into account percent. Moreover, the guarantor should give to monetary institution some information including id data and the inquiry on incomes. So the bank reduces to a minimum risk of registration of the credit to the person under false documents.
Involving the person to vicarious liability it is possible under that agreement which with him was concluded by the credit organization. The given agreement includes certain obligations of the guarantor, and also specifies those situations at which he can hold liable. In most cases it concerns those situations when the borrower doesn’t repay to bank debts under the credit.
More often it happens so that the indebtedness under a loan in equal parts is collected, both from the borrower and from its guarantors. Thus guarantors bear the same responsibility under the credit, as well as the debtor. However, under the law the bank has the right to solve, from whom exactly to recover a credit debt – from the debtor, its guarantor or all together. Better to say, bank can demand complete debt settlement from the guarantor if the borrower has flatly refused to pay. For the sake of justice it is necessary to notice that the guarantor can bring an action against the debtor and demand from him returning of that money which he has paid instead of him. But, as practice shows, returning means to the guarantor is a rarity.
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