A surety means a situation when one person acts as the guarantor of the performance of obligations to the creditor of another person. In case of default by the latter of its obligations, the surety bears full or partial responsibility to the creditor.
Instructions
Step 1
When concluding loan agreements secured by a surety, the guarantor often has to bear the entire burden of responsibility on his own. Standard forms of agreements more often provide for the guarantor and the borrower joint and several rather than subsidiary liability (that is, the guarantor is liable to the lender in the same volume and on the same terms as the borrower), therefore, for the lender it does not matter who to levy collection: the borrower himself or his guarantor.
Step 2
The surety terminates at the moment of termination of the obligation that it secured. In this case, the obligations can be fulfilled both by the borrower himself and by the guarantor. In the latter case, all the rights of the creditor are transferred to the guarantor, that is, he can demand from the borrower the fulfillment of obligations to the same extent as he himself performed them to the creditor. For this, the creditor is obliged to transfer to the surety all the necessary documents confirming the claims against the debtor.
Step 3
Also, the law provides for the possibility of terminating the surety in the event that the lender has changed the conditions for the borrower in the direction of increasing liability, worsening the situation of the guarantor, without obtaining the consent of the guarantor himself. Despite the fact that the last provision is enshrined in article 367 of the Civil Code of the Russian Federation, it is rather problematic to remove the surety, referring to it. Lenders prescribe in the terms of the agreement that a written notification of the guarantor about the change in the terms of the loan agreement with the borrower is sufficient, and the silence of the guarantor is regarded as his consent.
Step 4
The surety is terminated if the borrower or the guarantor offered the lender to duly fulfill the obligations under the agreement, but the lender refused to do so. Also, the basis for the termination of the surety is the transfer of the debt to another person, in which the surety refuses to answer for the new debtor.
Step 5
The surety ceases to be valid at the time of the expiration of the surety agreement. If such a term is not established by the agreement, the term of performance of the obligation secured by the surety shall be taken as the basis. If, within a year from the date of this period, the creditor has not filed a claim against the surety, after that he cannot demand from the surety the performance of obligations. When it is impossible to establish the deadline for the fulfillment of the main obligation, or it is determined by the moment of demand, the deadline for the presentation of the creditor's claims is extended to two years.
