Under what circumstances does the guarantor do not have to pay back?

Mondo Social Updated on 2024-01-30

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Someone asked the guarantor how he didn't have to pay back. In some cases, the guarantor may be exempted from the obligation to repay the debt. Here are some scenarios that might apply:

1. The borrower fulfills the repayment obligation: If the borrower has fulfilled the repayment obligation, the guarantor does not need to be liable.

2. The lender exempts the borrower from the repayment obligation: If the lender chooses to exempt the borrower from the repayment obligation, then the guarantor does not need to be liable.

3. Lender waives security rights: If the lender voluntarily waives the security rights, then the guarantor does not need to be liable. This is relatively rare and is generally due to a serious breach of contract by the guarantor.

4. Exceeding the guarantee period: If the guarantee contract clearly stipulates the guarantee period, and the creditor does not claim its rights within the time limit, the guarantor can be exempted from the guarantee liability because the guarantee period has expired.

5. Exceeding the statute of limitations: If the lender does not file a lawsuit within two years from the expiration of the performance period of the loan contract, the guarantor will be exempted from the guarantee liability because the main debt has exceeded the statute of limitations. Even if the principal debtor waives the defense of the expiration of the statute of limitations, the guarantor still has the right to this defense.

6. Active compensation: In the case of serious overdue loans, the guarantor can take the initiative to pay the entire loan, thereby exempting the borrower from the repayment obligation.

7. Failure to go through the repayment procedures: If the borrower has certain financial strength, but does not apply for the payment of the loan or has moral defects, the guarantor is obliged to repay the loan for the borrower in accordance with the loan guarantee agreement, thereby exempting the borrower from the repayment obligation.

It should be noted that the above situation is only applicable to the general situation, if you or the people around you are facing many problems that cannot be solved, welcome to leave a message to discuss, thank you for your attention.

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