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Securing of a Loan: Agreement for a Simple Surety

Key points and template

Approovd helps you to create a legally compliant agreement for a simple surety easily and in just a few minutes. For only CHF 89 per document.

Key Points Included in This Agreement for a Simple Surety

Maximum amount and duration of the surety
Conditions for enforcing the surety
Specific form and consent provisions if the guarantor is a private individual

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

What is an Agreement for a Simple Surety?

A surety agreement is a contract in which a person or an organization agrees to guarantee the repayment of a loan taken out by another person or organization. The agreement is made between the guarantor, who is not the same person as the borrower, and the lender. It’s important to note that there are separate arrangements in place between the guarantor and the borrower.

In contrast to a joint surety, a lender cannot enforce a simple surety just because the borrower is in default or has been unsuccessfully admonished. Instead, the lender can only pursue the guarantor in specific circumstances, which essentially means that the borrower will not repay the loan.

If the guarantor is a private person, there are additional requirements for the surety amount, in particular, if the guarantee is more than CHF 2,000. Additionally, if the guarantor is married or has a registered partner, their spouse or partner must give their consent in writing.