Securing of a Loan: Agreement for a Simple Surety

Key Points and Template in English

On this page, we provide you with an overview of the most important aspects of an Agreement for a Simple Surety in Switzerland, including the elements to be taken into account when drawing up the agreement.

Subsequently, we will provide you with a legally compliant template of an Agreement for a Simple Surety under Swiss law.

Use an Agreement for a Simple Surety if ...

… you are willing to guarantee the loan taken out by another organization or person

… you have granted a loan and another person or organization guarantees its repayment

… you have taken out a loan and another person or organization is willing to guarantee its repayment

Key Points included in an Agreement for a Simple Surety:

What is an Agreement for a Simple Surety?

Under this (simple) surety agreement, a person or organization agrees to guarantee the repayment of a loan taken out by another person or organization. 

The surety agreement is entered into between the guarantor – who is not the same person as the borrower – and the lender. There usually are separate arrangements in place between the guarantor and the borrower. 

Unlike under a joint surety, the lender may not enforce a simple surety just because the borrower is in default and has been unsuccessfully admonished. Rather, the lender can only pursue the guarantor in a narrowly defined set of circumstances which broadly entail that the borrower clearly will not reimburse the loan. 

If the guarantor is a private person, there are additional form requirements beyond a surety amount of CHF 2,000 and, if he/she is married or has a registered partner, the spouse or partner must give his/her consent in writing.  

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