One employee obtained a personal loan from Bank and died in the middle of the loan term. The bank without any prior notice started recovering the loan amount from the salaries of the sureties. They did not file any case against the Legal reps. Is it correct procedure, Please explain what next step to be taken.......
2007-11-09 22:59:56 · 2 answers · asked by Raghu R 2 in Politics & Government ➔ Law & Ethics
once u sign for somebody as a gurrantor, u are liable to pay toff the debt. this is what the law says.But this is valid only if the debtor refuses to pay. In case of death of a personal who has taken a loan his legal heirs have to clear the debt.
please contact a lawyer and file a case against the bank immediately, without any further delay.
2007-11-11 22:28:35 · answer #1 · answered by Anonymous · 0⤊ 0⤋
The bank can validly recover from the sureties when it is stipulated on the contract in case the principal fails to pay. The remedy of the sureties is to file a reimbursement on the estate of the principal debtor.
2007-11-10 01:05:17 · answer #2 · answered by FRAGINAL, JTM 7 · 0⤊ 0⤋