13/05/2023
In a landmark verdict, the Appellate Division of the Supreme Court has cleared the way for lenders to auction the property of guarantors, in case borrowers failed to repay loans.
From now on, it will be wise to think twice before agreeing to be a guarantor for someone looking for loans from banks or other institutions. Guarantors will no longer be able to distance themselves from the original borrowers and escape the liability of repaying the entire loan with interest in the event of default by using court stay orders as shields.
For sources, read more: https://www.tbsnews.net/economy/banking/no-easy-exit-loan-guarantors-630718
