ALL About the Liability Guarantee Loan Period

June. 12,2020
ALL About the Liability Guarantee Loan Period

Loan guarantees should be a foratime, which menas the period of guarantee. In a loan guarantee agreement, the agreement of the parties on the period of the loan guarantee is very complex, so there are several issues to be aware of during the period of application of the guarantee:

 

First, the guarantee period is the exorarate period. The so-called ex-repudiation period refers to the period during which a right is determined by law to survive and is extinguished at the end of the period. With the exception of the non-constant period, the guarantee period is suspended, interrupted and extended for any reason, and the guarantee period is the duration of the creditor's right to require the guarantor to assume the guarantee, and therefore the guarantee period under the guarantee law is the period of expropriation. Since the liability of guarantee is different from general civil liability, the guarantor is in fact liable to others, it is necessary that the law establish a constant period of time to limit the guarantee in order to prevent the guarantor from assuming indefinite responsibility of the company. When the creditor does not exercise his rights in a timely manner at the end of the guarantee period, the guarantor is required to assume the substantial right to guarantee liability to be extinguished and the guarantor is exempt from liability for the guarantee.

 

Second, the agreed guarantee period exceeds the statute of limitations. At present, the law does not limit the end of the guarantee period, if the agreed guarantee period is longer than the statute of limitations, because the creditor has lost the right to win the case against the debtor, and then require the guarantor to assume responsibility for the guarantee, contrary to the law, but the guarantor's guarantee behaviour has been established , therefore cannot be completely exempted, must be treated with unclear agreement.

 

Third, the issue of the agreed guarantee period being pre- or equal to the term of the loan. In this case, it should be considered as a non-agreement of the parties that the guarantee period is a legal period, i.e. six months from the expiry date of the loan obligation term.

 

Fourth, the agreed guarantee period to assume responsibility for the guarantor guarantee until the principal's loan debt and interest on these similar content issues are paid off. The meaning of such an agreement is clear, but there is no clear insurance period, which is contrary to the legislative intent of the period during which the guarantee was established and should therefore be considered invalid, considered an unclear agreement and the guarantee period is two years from the expiry date of the loan obligation execution period.