In other words, a surety usually only pays for a borrower`s debt if the borrower is late. In the above-mentioned case, the parents of a young farmer at retirement age may refuse to jeopardise their entire pension for the start-up of their son or daughter. However, parents may be open to guaranteeing the repayment of part or all of the young farmer`s debt if the young farmer is unable to pay the debt. In this situation, the “primary” person responsible for repaying the debt is the young farmer borrower, and usually the lender can only collect the debt from the guarantors if the borrower is late. . . .
- September 14, 2021