The surety agreement implies the full responsibility of the guarantor for the implementation of credit obligations in the event that the borrower does not fulfill these obligations. Guarantors rarely think about the measure of the assumed responsibility until the moment when the bank requests payment under such an agreement.
Agree to a surety only if you are really ready to take on the borrower's credit obligations. If the surety agreement has already been signed, and the realization that the obligations under it are not suitable for you came later, it is important to begin the termination procedure before the borrower stops paying the loan. In this case, the chances of a successful termination increase many times over.
The easiest option from the point of view of interaction with the bank is to find a new guarantor that meets the bank's requirements. However, this method is difficult to apply in practice, since it is quite problematic to find a replacement for the surety.
At the same time, the surety agreement can be terminated unilaterally, subject to certain conditions. So, be aware that the surety agreement is considered terminated by default, as soon as the obligations under the main agreement are fulfilled. In other words, the borrower will need to repay the loan ahead of schedule, for example, by taking a loan from another bank.
Analyze the documents. A surety agreement is considered invalid if changes that are unfavorable for the surety have been made to the loan agreement without the consent of the guarantor. If the loan rate has increased, the terms have been changed to a shorter side, etc., about which you, as the guarantor, were not notified. Apply with a cancellation request.
Try to reissue the loan to another person. The fact is that the surety agreement is considered invalid if the loan was reissued to another person without the consent of the guarantor to bear obligations in relation to the new borrower.
If the borrower has stopped payments, and the guarantor has not received any claims from the bank for the performance of obligations during the surety period mentioned in the agreement (or within a year, if the agreement does not specify otherwise), the agreement can be canceled.
If the bank refused to accept the fulfillment of loan obligations by the borrower, the surety agreement can be canceled (for example, if the bank refused to repay the loan early, after which the borrower stopped paying).