Liability of the gurrantor.

bondreshabda (Querist) 21 February 2008 This query is : Resolved
what is the liability of the gurrantor , if the debtor dies before the loan amount is fully paid.

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Prakash Yedhula (Expert) 21 February 2008
Since the liability of the guarantor is co-extensive with the principal debtor he is liable for the amount even in case of death of the principal debtor

Aniruddha.P.Pawse (Expert) 05 March 2008
the gurantor is liable to pay the balance amount of debtor after his death.

Srinivas.B.S.S.T (Expert) 20 June 2008
the laibility of the guarantor lives with him unless until the laon amount is completely repaid.

SANJAY DIXIT (Expert) 25 July 2008
No. The financial institution will freeze the account of the borrower to determine the indebtedness and unless there are other sources of payment, the financial institution will seek recourse from the guarantor.

SANJAY DIXIT (Expert) 25 July 2008
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Adv.Shine Thomas (Expert) 14 October 2008
The guarantor is liable to pay the balance amount

WHATSAPP 91-8075113965 (Expert) 03 April 2009
SIRS,
I AM QUOTING A SIMILAR INSTANCE , BUT ON CRIMINAL SIDE.
A PERSON STANDS AS A SURETY FOR AN ACCUSED IN A CRIMINAL CASE, UNDERTAKING TO PRODUCE THE ACCUSED AS AND WHEN REQUIRED BY THE COURT, FAILING WHICH HE BINDS HIMSELF TO PAY THE BOND AMOUNT OF 50,000/-
IF THE ACCUSED DIES DURING TRIAL,SURETY WILL BE EXONERATED FROM LIABILITY,ALTHOUGH LEGAL PROVISION IS SAME, WHY THIS DIFFERENT CRITERIEA ?

Y V Vishweshwar Rao (Expert) 01 May 2009
The Purpose of the Surety in Criminal Case and Guarantee /surety in loan accounts are quite deferent . One is for compliance of the attendance of the accused and Criminal Trial, the criminal Trail will be closed on the death of accused

The another is basically for recovery of the Due amount in loan account ! It will continue as per the Guarantee agreement till it is paid