whether the surety is liable to pay off the loan in case the borrower defaults in the payment.
2007-03-26 02:08:10 · 3 answers · asked by subhadra p 1 in Business & Finance ➔ Personal Finance
It is extremely rare for any surety to issue a bond that guarantees against a credit loss.
Most bonds issued to bank institutions are related to the theft of funds, not loan defaults.
If a bond is issued that guarantees payment performance on a debt, then the surety would be liable. That would not relieve the borrower from the debt responsibility. The surety, in most cases, would be able to go after the borrower to recover any losses.
2007-03-26 14:24:05 · answer #1 · answered by suretyguy 3 · 0⤊ 0⤋
i am not aware of any general judgement. but you have a very valid point.
2007-03-30 08:14:27 · answer #2 · answered by sarjan 3 · 0⤊ 0⤋
for more info click on
http://www.rbi.org.in/scripts/bs_viewcontent.aspx?Id=171
http://www.cwilson.com/pubs/comlend/kjm1/guarantee.htm
http://www.topsearch10.com/search.php?aid=56201&q=india
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2007-03-26 13:41:43 · answer #3 · answered by Kevin 5 · 0⤊ 1⤋