Guaranteed Loan pattern

In the above-mentioned loan of five hundred. Any loan granted will put the bank at risk of default. It is often agreed that a security must be provided according to the model of the person entitled to protection. The borrower provides a self-acting guarantee in the amount of EUR. Bills, bills, loans and loans of all kinds and bills of exchange).

Guarantee Sample Contracts – Materials

The guarantor may visit the guarantor after one year with a term of three years after giving notice of termination notice. In this case, the claim of a guarantee is limited to the status of liability of the principal debtor at the end of the period of notice. The right to termination for important reasons remains unaffected. 

The right to termination for important reasons remains unaffected.

Previously, he spent many years as a lawyer in the legal department of a large German-speaking bank. 

Use of immoral guarantees, spouse guarantees, community loans

Challenging guarantees and loan agreements often open up entirely new prospects for guarantors or borrowers and their family members. Let us go over your facts. A blatant overstretching is given if the liability borne by the guarantor is so high that it is already to be feared upon conclusion of the contract that the guarantor can not repay the claims of the guarantor? should the warranty risk occur? at least in significant proportions.

For the performance evaluation of the guarantor, only his financial circumstances are to be taken into account, not even those of the debtor or other persons associated with the guarantor. For example, if the principal claim is not insignificant, it can be expected that the guarantor will be severely overburdened if he is unlikely to even be able to pay the current interest payments on the principal claim.

When concluding guarantee contracts, which in most cases are concluded with lenders as lenders, they are required to obtain detailed information about the economic situation of the guarantor. If he fails to do so, the financial institution shall at least show gross negligence and behave as if he were aware of the guarantor’s excessive financial burden.

In addition, the credit institutions and lenders are obliged to inform the future guarantor in detail about the risks of a guarantee before signing the contract. The obligation is not limited by the fact that a guarantee has to be given in writing. Although this should encourage the future guarantor to review his decision to take on a guarantee, the non-entrepreneurial guarantor, without the necessary extensive clarification by the financial institution, can not account for the full range of risk to be borne by him.

It is therefore not sufficient for the guarantor at home to be taken by surprise by one of the above-mentioned persons with a request for the assumption of joint and several liability for the debt. This puts the guarantor in a psychological emergency due to his emotional attachment to the debtor. This is the case, for example, when a spouse is induced, for example, by a call to one’s will and willingness, to enter into a co-commitment which hardly increases the satisfaction chances of the credit institution, but can be ruinous for the spouse.

However, it should be added that the guarantor had no economic self-interest in concluding the loan agreement. The fact that the guarantor was not listed as a borrower in the loan agreements is contrary to economic self-interest. From the fact that the guarantor expects a monthly income from the company of the main debtor, there is no economic ego.

The benefits are only intended to meet the obligation of the guarantor in the company of the debtor and are not a contract value for the given guarantee. If the choice of a spouse is influenced by the fact that his signature is only a formality or the scope of the signing is otherwise trivial and the risks of co-obligation worsen, this is another indication of the immorality of the guarantee.

For example, it has sometimes been alleged that the spouse’s liability is always customary and dependent on the financial strength of the guarantor. In this case, the future guarantor does not consider the scope of his contract, so that even the written form of the guarantee contract can no longer fulfill his warning function. A guarantee certificate, which is required to protect the creditor from the transfer of assets despite the guarantor’s economic overload, is unfounded.

This would put this lender in a better position than other lenders. In this case, all other lenders must refer to the general rules. In addition, the lender also ensures by concluding a guarantee agreement too much. The other lenders may rely on the applicability of the general rules only on the assets received by the principal on behalf of the person to whom the principal debtor’s assets were transferred, while the guarantor is liable to the creditor with his other own funds.

The guarantee for an expected inheritance is obsolete, if such is not present. The only exception is if the guarantee contract contains a confirmation that such a fact exists and the surname of the deceased has been mentioned. In addition, the guarantee agreement must provide that the lender can not take action against the guarantor until succession.

In addition, it is advantageous to limit the responsibility of the guarantor to the estate of the deceased.