Concept in Definition ABC

The term of guarantee is called that joint commitment of pay of a obligation at the request of the creditor or beneficiary who will be assumed by a third party, generally emotionally linked with who will have to comply with the payment obligation, in the event that the latter does not comply or cannot comply with the corresponding payment of a Title of credit.

An endorsement will always involve a Will extra in addition to the two participants, who lends and who receives, meanwhile, this third person who also participates in the title in question will do so in a unilateral.

Almost always, as a condition without equanom, whoever wants to receive a loan must tell with an endorsement at the time of subscribe a degree of credit, because he will need to prove to the entity bank, which is almost always the one that lends the money, and this also to obtain insurance, that if the person to whom the money was loaned when the time came and for For some reason it cannot be returned according to the previously agreed terms, then, the entity may demand and require the aforementioned payment to whoever has come out as collateral in the loan, being able not only to auction the goods to the beneficiary of the loan but also to the one who came out as guarantor, in order to recover the amount borrowed.