How to caculate guarantee period?

Date:2022-05-26 15:00:41  Views:546

If the parties agree that "the guarantor is willing to bear unlimited joint and several liability for the debt", whether the guarantee period is "unclearly agreed" or regarded as "no agreement".

 

The "Loan Agreement" signed by both the borrower and the guarantor stipulates: "The guarantor voluntarily provides guarantee for this contract. If the debtor fails to perform its obligations as agreed in this contract, the guarantor is willing to assume unlimited joint and several liability". The "joint and several" liability here clarifies the guarantor’s method of assuming responsibility in the "Loan Agreement", so the "unlimited" agreement is the guarantee period, which is indeed a situation where the guarantee period is unclear. According to the second paragraph of Article 32 of the Judicial Interpretation of the Guarantee Law, if the guarantee contract stipulates that the guarantor shall bear the guarantee liability until the principal and interest of the principal debt are repaid, the agreement shall be deemed unclear, and the guarantee period shall be the period for the performance of the principal debt, namely 2 years from the expiry date”, it is determined that the period for which the guarantor bears the guaranty responsibility is 2 years, and there is a corresponding basis.