The Different Types of Bonds

The single deposit

It is only required to pay if the principal debtor cannot do so. Note that there can be several simple bonds.

The lessor-owner or financial institution first turns to the principal debtor (tenant or borrower) to try to recover the money owed. Only if he is insolvent and the proceedings against him are unsuccessful will the bond be incurred.

The ” benefit of discussion ” allows the guarantor not to pay instead of the debtor if he has not been sued beforehand for the payment of his debt. But if the simple surety has declared “to give up the benefit of discussion” in the suretyship contract, it finds itself in the same situation as the surety bond. And if there are several simple bonds, each of them can ask the creditor to be sued only for his share of the debt, in the application of the ” division benefit “.

 

The solidarity guarantee

It is riskier because, in case of non-payment by the principal debtor, it can be directly called by the beneficiary of the guarantee (lessor-owner or financial institution), without going through the principal debtor.

That is, the lessor-owner or the financial institution can directly ask the guarantor to pay the debt (rent, charge, or unpaid credit term). It is not necessary for the lessor-owner or the bank to sue the lessee or the borrower to bind the guarantor.

The guarantee commitment can be defined, that is to say, limited to a certain amount definitively fixed at the time of signing the loan agreement. In this case, the guaranteed amount must be entered in figures and in letters in the contract. The deposit will be continued only for this amount, even if the total debt is higher. This commitment can be indefinite: the commitment to the debt, whatever its evolution.

The duration of the deposit can be determined. The bond is valid for the initial term of the lease contract or for the duration of the loan, for example. In this case, the guarantor can not disengage before the end of the guaranteed contract. Or the bond is committed for an indefinite period (for the duration of the lease and its renewals or in the absence of precision of the duration of the lease for example). In this case, the surety may terminate his commitment at any time by informing the landlord or the financial institution by registered letter with acknowledgment of receipt.