How is the repayment of the loan

Posted on Nov 27, 2000 08:15:27 AM

Ways to ensure loan repayment – this is the types and forms of guaranteed obligations of the borrower ne-ed a creditor (the bank) to return the loan in case of possible non-repayment by the borrower.

The pledge is one of the most effective ways to encourage the borrower to meet its obligations under the loan agreement – to repay the lender. The pledge arises under a treaty. The agreement defined the mortgagor and mortgagee, stated collateral.

Collateral provided to all requirements of the creditor-mortgagee, arising at the time of their submission, unless otherwise stipulated in the contract. Among these requirements stand out:
1) the amount of principal and interest;
2) the costs the lender in connection with the performance of obligations, including costs associated with the public sale of property, auctions, contests, payment of commission, etc.;
3) the creditor losses associated with interest payments, penalties;
4) costs of the lender associated with the maintenance of the property.

All these amounts are charged to the mortgagee and shall be compensated at the expense of a foreclosure sale. Civil law provides that a pledge agreement must be concluded in written form. Bank loan secured by real estate under normal economic conditions – one of the most popular and attractive to the lender.
One way to enforce the loan obligation is a guarantee. The Guarantor undertakes to the creditor responsible for the execution by the borrower of his obligations in full or partially ¬ hour. Surety can provide both legal and physical persons. For the formalization of relations between the surety and the surety creditor bank signed a guarantee agreement.
Bank guarantee (as surety) that is lyayas means of repayment of outstanding debt, rather convenient. And so often used by credit-Ditor who seek to avoid financial losses. All relations between the creditor and the guarantor are defined in the contract of a bank guarantee, which (like all contracts) must be made in writing. Failure to observe this rule will lead to the recognition of the treaty null and void. The guarantee is issued or the signing of a bilateral agreement, or the direction of the guarantor to the creditor a letter of guarantee.

Letter of Guarantee – a document certifying-yuschy contract between the creditor bank and the guarantor. From the contract bank guarantee must be made clear-vat, for the performance of the obligations guaranteed given lithium for whom it is given (name of creditor) and for whom (name of debtor).

borrower, collateral, commitment, contract, creditor, guarantor, warranty,

1. What is the system of lending
2. Forms of credit
3. Opening lines of credit
4. Mortgage Lending
5. Results for guarantor

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