If the joint guarantee team signed a small loan joint guarantee agreement, but the borrower fails to repay the loan and pay interest as agreed in the loan contract, the bank has the right to deduct the loan from any deposit account of the borrower and the joint guarantee, including the principal, interest, penalty interest and the cost of realizing the creditor's rights.
Moreover, if the borrower fails to repay the loan principal and interest due in the current month, the co-sponsors shall assume the obligation to repay the loan principal and interest due in the current month. If the borrower fails to repay the principal and interest of the loan in the current month, the guarantor shall undertake the obligation to repay all the principal and interest of the remaining loan of the borrower.
If the procedures such as the Small Joint Guarantee Loan Contract and the Small Joint Guarantee Agreement are signed and confirmed, other co-guarantors are responsible for repaying the expenses that cannot be repaid by the other lender. Other co-sponsors have formed a legal relationship of guarantee contract with the lender who can't repay the loan. Banks or financial institutions have the right to borrow the principal and interest of loans and bear the liability for breach of contract, and the co-sponsors bear the joint liability for repayment.
Extended data:
If the other person fails to pay the joint guarantee loan, the joint guarantor shall bear the responsibility. Each member can apply for a loan within the corresponding amount, and any member of the UNPROFOR will provide joint and several liability guarantee for the overall loan amount and non-self-raised funds within the term of the UNPROFOR.
As long as one party's capital chain breaks, it will hurt the other party, and the final result, that is, any party's breach of contract, will put a heavy burden on all unprofor members. Accordingly, borrowers should try to avoid applying for loans under the joint venture model. Even if this model is adopted, they should choose people who are familiar with each other and have equal economic strength to form a joint venture company to avoid possible risks in the future to the greatest extent.
Gansu court network-Yumen court: three households jointly borrowed, one defaulted and three households returned.