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#708544 - 03/29/07 02:53 PM Guarantor vs Coborrower
countrytink Offline
Junior Member
Joined: Feb 2004
Posts: 48
Illinois
I'm looking for a good definition for a Guarantor - this involves a commercial loan. I'm trying to check exactly when a guaranty can be exercised. I believe it's only when the loan is in default and all other avenues, such as liquidation, have been pursued.

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#708657 - 03/29/07 04:17 PM Re: Guarantor vs Coborrower countrytink
Tom at HOME Offline
Diamond Poster
Joined: Oct 2005
Posts: 1,139
This depends on the terms listed in the guarantee agreement. If it is a guaranty of collection, you must first pursue all avenues of collection, including obtaining a judgment against the obligor. If, on the other hand, it is a guaranty of payment or performance, in most cases, you're only required to make demand on the obligors and show that they defaulted on that demand.

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