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Joint and several guarantee


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CategoryPractical guidelines
ChapterLoans


Joint and several guarantee

Joint and several guarantee is when a third party (the surety or guarantor) is solidarily liable, with the person who takes out a real estate credit or consumer loan, towards the creditor. The guarantor undertakes to answer for payment of the credit in case the person who contracted the credit fails to do so.

A joint and several guarantee of an individual is accepted by some lenders in guarantee of a credit. Far from being a moral obligation, the joint and several guarantee can have serious consequences for the person acting as guarantor. This person must be aware that he/she cannot backtrack on his/her commitment.

If the person who took out the credit defaults on loan repayment, the bank can directly contact the guarantor and claim the sums not paid by the borrower, within the limit of the sums stipulated in the guarantee. The guarantor can then take action against the debtor for reimbursement of the sums paid.

The guarantee must comply with a specific format, under penalty of being declared void. It must specify the nature (simple or solidary), the amount and duration of the surety, be handwritten and signed.


Updated on: 29/09/2008


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Joint and several guarantee


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